Pablo,a Sole Proprietor,sold Stock Held as an Investment for a $40,000

Multiple Choice

Pablo,a sole proprietor,sold stock held as an investment for a $40,000 long-term capital gain.Pablo's marginal tax rate is 33%.Loon Corporation,a C corporation,sold stock held as an investment for a $40,000 long-term capital gain.Loon's marginal tax rate is 35%.What tax rates are applicable to these capital gains?

A) 15% rate applies to Pablo and 35% rate applies to Loon.
B) 15% rate applies to Loon and 33% rate applies to Pablo.
C) 35% rate applies to Loon and 33% rate applies to Pablo.
D) 15% rate applies to both Pablo and Loon.
E) None of the above.