Shasta Has the Following Capital Gains and Losses and Qualified

Short Answer

Shasta has the following capital gains and losses and Qualified dividend income during the current year:
$\begin{array}{lc}\text { Short-term capital loss } &\$(4,000) \\\text { Collectibles gain } &6,000 \\\text {Long-term capital gain } &2,000\\\text { Qualified dividend income }&3,000\\\end{array}$
If Shasta's marginal tax rate is 33%,what is the effect of the above on her taxable income and income tax liability?
$\begin{array}{cc}\text { Income } & \text { Tax Liability } \\a.\$ 7,000 \text { increase } & \$ 1,050 \text { increase } \\b.\$ 7,000 \text { increase } & \$ 1,310 \text { increase } \\c.\$ 8,000 \text { increase } & \$ 1,590 \text { increase } \\d.\$ 7,000 \text { increase } & \$ 1,960 \text { increase } \\e.\$ 9,000 \text { increase } & \$ 1,850 \text { increase }\end{array}$