Ethan, a Sole Proprietor, Sold the Following Assets in 2019

Multiple Choice

Ethan, a sole proprietor, sold the following assets in 2019: $\begin{array}{llrr}\underline{\text { Asset } }& \underline{\text { Cost }}&\underline{\text { Accumulated Depreciation}}&\underline{\text { Sales Price }}\\\text { Equipment } & \$ 30,000 & \$ 5,000 & \$ 36,000 \\\text { XYZ stock } & \$ 12,000 && \$ 9.000\end{array}$
The equipment was purchased several years ago but the XYZ stock was purchased as an investment on 3/9/19 and was sold on 11/15/19.Ethan is in the 32% marginal tax bracket for 2019.At the beginning of 2019, he had $2,000 of unrecaptured Section 1231 losses from 2 years ago.How much additional tax will Ethan pay as a result of these transactions?

A) $1,200
B) $1,650
C) $2,390
D) $2,640