Tax on Stock Gains

Linda sells stock she has held for 14 months at a $12,000 gain. She is in the 24% marginal income tax bracket. How is the gain taxed?

  1. As ordinary income at 24%
  2. As a long-term capital gain at 15%
  3. As a long-term capital gain at 20%
  4. As a qualified dividend taxed at 15%