Jesse was the sole proprietor of an unincorporated retail business for many years. However, after receiving an offer he couldn't refuse, he sold all of his business assets in a single transaction on May 20, 2022. The total sales price of $300,000 included $25,000 of inventory.How should the sale of the inventory be reported on Jesse's 2022 tax return?

Ordinary income on Schedule C.

Capital gain income on Schedule D.

Ordinary gain in Part II of Form 4797.

Gain from disposition of property in Part III of Form 4797.