Suppose That the Government Taxes Income and Investment Earnings at 25

Suppose that the government taxes income and investment earnings at 25% and allows half of investment losses to be deducted from taxable income,up to a maximum of $3,000 per year.Which of the following amounts is equal to the tax loss offset for someone who lost $5,000 on investments last year?

A) $2,500
B) $3,000
C) $3,750
D) $5,000