Serenity Has the Following Capital Gains and Losses for the Current

question 17

Multiple Choice

Serenity has the following capital gains and losses for the current year:
$\begin{array}{lr}\text { Short-term capital loss } & \$(8,000) \\\text { Long-term capital gain } & 3,000 \\\text { Collectible gain } & 2,000 \\\text { Collectible loss } & (4,000) \end{array}$
If Serenity is single and has taxable income from other sources of $75,000,what is the impact of her capital gains and losses on her income tax liability?

• A)$ 690 decrease.
• B)$ 750 decrease.
• C)$ 840 decrease.
• D)$1,050 decrease.
• E)$1,960 decrease.