Mrs. Stout has a $35,000 capital gain eligible for a 28% preferential tax rate. Which of the following statements isfalse?

Multiple Choice

1.) If Mrs. Stout's regular marginal tax rate is 22%, she can elect to recharacterize the capital gain as ordinary income.

2.)If Mrs. Stout's regular marginal tax rate is 24%, the preferential tax rate has no value to her.

3) If Mrs. Stout's regular marginal tax rate is 35%, the preferential tax rate saves her $2,450 in tax.

4)None of these choices are false.