Sanderson Has the Following Capital Gains and Losses and Qualified

Sanderson has the following capital gains and losses and Qualified dividend income during the current year:
If Sanderson's marginal tax rate is 33%,what is the effect of these transactions on his taxable income and income tax liability?
Taxable Income Tax Liability

A) $7,000 increase $1,770 increase
B) $5,000 increase $ 633 increase
C) $5,000 increase $1,650 increase
D) $5,000 increase $ 750 increase
E) $5,000 increase $1,110 increase