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 35% tax bracket? a. $1,400 tax reduction. b. $1,050 tax reduction. $850 tax reduction. d. $450 tax reduction. Which of the following statements is true regarding refundable tax credits? a. There are more refundable tax credits than nonrefundable credits. b. Refundable tax credits can be used only to reduce or eliminate the current year's tax. C. Refundable tax credits can generate a tax refund. d. For federal income tax purposes, refundable credits are used before nonrefundable credits