Felix sold a rental house for $300,000. Felix bought the rental house five years ago for $270,000 and has claimed $50,000 of depreciation expense. Assume Felix is in the 37% bracket. Assume he sold no other assets. At what rate will Felix's recognized gain be taxed.

Select one:

a. $30,000 gain taxed at 37%

b. $30,000 gain taxed at 20%

c. $50,000 taxed at 37%

d. None of the choices are correct.

e. $30,000 gain taxed at 25%