LO4 Marnie buys 500 shares of qualified small business stock in H.R. Pizza, Inc., on September 10, 2005, for $20,000. She sells the 500 shares for $120,000 on October 2, 2010. Marnie’s other capital asset transactions consist of a $7,000 short-term capital loss, a $25,000 long-term capital gain, and an $8,000 long-term capital loss carryover from 2009. Marnie is single, and her taxable income is $98,000 without considering her capital asset transactions. What is the effect of the sale of the stock on Marnie’s 2010 income tax liability?

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