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:
$\begin{array}{lc}\text {Short-term capital gain } &\$ 6,000 \\\text {Collectibles loss } &(5,000) \\\text {Long-term capital gain } &1,000 \\\text { Qualified dividend income } &3,000\end{array}$
If Sanderson's marginal tax rate is 33%,what is the effect of these transactions on his taxable income and income tax liability?
$\begin{array}{lr}\text { Taxable Income } & \text { Tax Liability } \\a.\$ 7,000 \text { increase } & \$ 1,770 \text { increase } \\b.\$ 5,000 \text { increase } & \$ 633 \text { increase } \\c.\$ 5,000 \text { increase } & \$ 1,650 \text { increase } \\d.\$ 5,000 \text { increase } & \$ 750 \text { increase } \\e.\$ 5,000 \text { increase } & \$ 1,110 \text { increase }\end{array}$