Compute the estimated tax liability on the differences between the estimated current value of the...

For Mary Lou and Ernie, the assets and liabilities and the effective income tax rates at December 31, 2010, follow:

Accounts	Tax   Bases	Estimated   Current   Value	Excess   of   Estimated   Current   Values over   Tax Bases	Effective   Income Tax   Rates	Amount   of   Estimated   Income   Taxes
Cash	$20,000	$20,000	$ —	—	________
Marketable   securities	80,000	100,000	20,000	28%	________
Options	0	30,000	30,000	28%	________
Residence	100,000	150,000	50,000	28%	________
Royalties	0	20,000	20,000	28%	________
Furnishings	40,000	20,000	20,000	—	________
Auto	20,000	15,000	5,000	—	________
Mortgage	70,000	70,000	—	—	________
Auto   loan	10,000	10,000	—	—	________

Required

a. Compute the estimated tax liability on the differences between the estimated current value of the assets and liabilities and their tax bases.

b. Present a statement of financial condition for Mary Lou and Ernie at December 31, 2010.

c. Comment on the statement of financial condition.