Chip,a Single Individual Has Two Sales of Stock During the Current

Multiple Choice

Chip,a single individual has two sales of stock during the current year.The first sale produces a short-term loss of $10,000 and the second sale results in a long-term gain of $40,000.Chip's taxable income without considering the gain is $150,000.Chip's stock transactions will increase his income tax liability by:

A) $3,200
B) $4,500
C) $6,000
D) $8,000
E) $8,400