A property purchased for $100,000 with an NOI of $7,000 per 10 years will be sold for $140,000. Cost Recovery taken over the holding period is $29,750. The investors ordinary income tax rate is 37 percent, the capital gains tax rate is 20 percent, and depreciation recapture is taxed at 25 percent.

Calculate the tax on the gain in value at resale in year 10.

A. $8,000

B. $13,438

C. $19,438

D. $12,000