Jorgehad gains and losses from the following transactions:

Gain from the sale of land held for two years used in business ...........................12,000

Loss from sale of business equipment held for more than one year.....................(8,000)

Collectibles Gain (Long-term) ...............................................................1,000

Gain on the sale of stock of Oshkosh Corp. held five years as an investment.........6,000

Loss on the sale of Texas Instrument stock held ten years as an investment(7,000)

He also has:

Salary142,500

Interest income on a certificate of deposit500

Interest income on municipal bond300

Long-term capital loss carryover(2,000)

How much of Jorge's net gains and losses will be subject to a15%tax rate

a. 4,000

b. 3,000

c. 2,000

d. 1,000

e. Zero