Sarah is filing as head of household and has 2021 taxable income of $59,000, which includes $3,000 of net long-term capital gain. The net long-term capital gain is made up of $1,000 25% gain and $2,000 0%/15%/20% gain. What is the tax on her taxable income using the alternative tax method? Note: Use the tax rate schedule rather than the tax table.

(a) $7,066

(b) $7,276

(c) $7,136

I know the answer is (c) but I'm unsure of how to calculate it. Please show your work, thank you!