Harry has 20000 in his mutual fund account, his original cost of acquisition was 10000 and 5000 is the total reinvested dividends, if he decides to sell all his units and is taxed at 40%, what will be his tax payable

Harry has 20000 in his mutual fund account, his original cost of acquisition was 10000 and 5000 is the total reinvested dividends, if he decides to sell all his units and is taxed at 40%, what will be his tax payable
A . 4000
B . 8000
C . 1000
D . 2000

Answer: C