Rachael Purchased 500 Shares of Qualified Small Business Stock (QSB)for

Rachael purchased 500 shares of Qualified Small Business Stock (QSB) for $900,000 on March 2,2008.On November 29,2013,she sells the stock for $1,000,000.Rachael also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000.Which of the following explain(s) tax consequences of the QSB stock sale?
I.The effective tax rate applied to the net gain on the sale of the QSB stock is 15%.
II.Rachael nets her $10,000 loss with her $100,000 gain before applying her exclusion rate.
III.Rachael is eligible for a 50% exclusion of the gain from the QSB stock sale.
IV.The QSB stock is QSB stock partly because Rachael held the stock for the required 3-year minimum.

A) Statements I and II are correct.
B) Statements II and III are correct.
C) Statements III and IV are correct.
D) Statements I, II, and III are correct.
E) Statements I, II, III, and IV are correct.