In 2019, H, contributed $100,000 in exchange for 1,000 shares of K Corp, which is a qualified small business. In 2026, H's only capital transaction was the sale of the 1,000 shares of K Corp qualified small business stock for $10,110,000. If H marginal rate on ordinary income is 37% and his capital gains rate is 15% (and ignoring any additional Medicare taxes), compute the tax on his gain from this sale. Preferential rate is 28% and multiplied by $10,000. Answer is $2,800. How did they get the 10,000? A. $1,501,500 B. $2,802,800 C. $1,500 D. $2,800 E. None of the above. In 2019, H, contributed $100,000 in exchange for 1,000 shares of K Corp, which is a qualified small business. In 2026, H's only capital transaction was the sale of the 1,000 shares of K Corp qualified small business stock for $10,110,000. If H marginal rate on ordinary income is 37% and his capital gains rate is 15% (and ignoring any additional Medicare taxes), compute the tax on his gain from this sale. Preferential rate is 28% and multiplied by $10,000. Answer is $2,800. How did they get the 10,000? A. $1,501,500 B. $2,802,800 C. $1,500 D. $2,800 E. None of the above