A taxpayer's main source of income for the year comes from a very large capital gain. On the Federal return this doesn't create a lot of tax. However, the State return has a substantial sum of tax. Why would this be$?$

A: California does not differentiate or preferentially tax long$-$term capital gains income, treating it instead as ordinary income.

B:The taxpayer received some form of credit or income exclusion on the Federal return that is not mirrored at the State level.

C:The preparer has incorrectly prepared the Federal return with less tax or an income exclusion which is distorting the appropriate amount of tax that should be shown on the Federal return.

D:The preparer has incorrectly prepared the State return with a substantial sum of tax where it should mirror the Federal's lack of tax.