Antonio is single and has a taxable income of $150,000 without considerin the sale of a capitl asset (land held for investment) in September of 2011 for $25,000. That asset was purchased six years earlier and has a tax basis of $5,000. The tax liability applicable to only the caital gain is?

a. $1,000

b. $3,000

c. $5,600

d. $7,000

(please show how answer was reached so I can check my work. Thank you)