Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Required: Compute Mr. Fox’s income tax and Medicare contribution tax if his taxable income before consideration of his capital transactions is $501,000. Use individual tax rate schedules and tax rates for capital gains and qualified dividends.

a) $121,775
b) $122,550
c) $123,325
d) $124,100