Renee Is Single and Has Taxable Income of $480,000 Without

Multiple Choice

Renee is single and has taxable income of $480,000 without considering the sale of a capital asset (land held for investment) in September of 2014 for $25,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain (without consideration of the additional Medicare tax) is

A) $7,920.
B) $5,600.
C) $3,000.
D) $4,000.