Dunbar, a Single Taxpayer, Purchased 300 Shares of Sweetwater, Inc

Dunbar, a single taxpayer, purchased 300 shares of Sweetwater, Inc., stock on October 14, 2012, for $3,000. He sells the stock on August 22, 2014, for $4,000. Dunbar has no other capital asset transactions in 2014. I. If Dunbar's taxable income without considering the stock sale is $93,000, the sale of the stock will increase his income tax liability by $250. II. If Dunbar's taxable income without considering the stock sale is $13,000, the sale of the stock will not increase his income tax liability.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.