Jason has three capital transactions for the current year:

Short-term capital loss of $5,000

Short-term capital gain of $3,000

Long-term capital loss of $2,000

What is the net effect on Jason's taxes if he is in the 32% tax bracket?

a. $1,280 tax reduction.

b. $960 tax reduction.

C. $800 tax reduction.

d.$450 tax reduction.