Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduction, and $10,000 in long-term capital gains, for total taxable income of $40,000. For 2020, single taxpayers pay 0 percent on long-term gains up to $40,000. Assuming a tax of $3,406 on the $30,000 of ordinary income, what is Harold’s tax?
a. $3,406
b. $3,503
c. $3,623
d. $4,094
e. $4,906