In 2003, the maximum tax rate on dividends and capital gains is 15%. Andrew, who is in the 35% ordinary income tax bracket, purchased 100,000 shares of stock at $50 per share in January 2003. Dividends of $0.50 per share were paid in April and September. In October, Andrew sole 20,000 shares for $60. At the end of the year, the shares had a market value of $55 per share. The taxes on Andrew’s stock investment in 2003 are
A: $ 15,000
B: $ 45,000
C: $ 85,000
D: $145,000
E: $225,000