9.9 Jim, age 39, converts a $74,500 Traditional IRA to a Roth IRA in 2013. Jims adjusted basis in the Traditional RA is $10,000. He also makes a contribution of $5,500 to a Roth IRA in 2013 for the 2013 tax year 2013. If Jim takes a $4,000 distribution from his Roth IRA in 2014 when the account is worth $100,000, how much total federal income tax, including penalties, is due as a result of the distribution assuming his 2014 federal income tax rate is 28%? Please show work for full credit.

a. $0

b. $224

c. $800

d. $1,120