Ronald, a single taxpayer, purchased 300 shares of Jasmine Inc. stock on October 14, 2017, for $4,000. He sells the stock on August 22, 2020, for $2,000. Ronald has no other capital asset transactions in 2020.

I. If Ronald's taxable income without considering the stock sale is $113,000, the sale of the stock will decrease his income tax liability by $480.

II. If Ronald's taxable income without considering the stock sale is $13,000, the sale of the stock will decrease his income tax liability by $240.

a.Only statement I is correct. b.Only statement II is correct. c.Both statements are correct. d.None of these statements are correct.