During the current year, Barry $($single taxpayer$)$ has taxable income of $$60,000.$ Of that amount, $$10,000$ is long$-$term capital gain. How will Barry calculate the tax on his income?

Multiple choice question.

Use the tax rate schedule to calculate tax on $$50,000$; multiply the capital gain income of $$10,000$ by $15\%$; then subtract the two amounts.

Use the tax rate schedule to calculate tax on $$60,000$; multiply the capital gain income of $$10,000$ by $15\%$; then add the two amounts together.

Use the tax rate schedule to calculate tax on $$50,000$; multiply the capital gain income of $$10,000$ by $15\%$; then add the two amounts together.

Use the tax rate schedule to calculate tax on $$60,000$; multiply the capital gain income of $$10,000$ by $15\%$; then subtract the two amounts.