Dan sold a gold pocket watch for $$12,000$ that he had inherited from his Uncle John several years ago. John had originally purchased it for $$2,000$ and it had a $$5,000$ FMV at the time of his death. If Dan$$s AGI is $$900,000,$ how will it be reported on his tax return? $($i$.$e$.$ what is the amount taxable and at what rate?$)$