Cory Recently Sold His Qualified Small Business Stock (Acquired in 2014)

Cory recently sold his qualified small business stock (acquired in 2014) for $90,000 after holding it for ten years. His basis in the stock is $40,000. Assuming his marginal tax rate is 35 percent, how much tax will he owe on the sale?

A) $3,750
B) $7,000
C) $7,500
D) $14,000
E) None of these