Kelly purchased a block of land in January 2012 for $150,000. She sells the land in August 2019 for $1,000,000. Although some of the increase in land value is a result of capital gain, Council valuations issued for each year suggest that at least 20% of the increase in value arises from zoning changes made to the district plan in 2018. The Taxable Income that arises for Kelly from the sale of the land is:

Select one:

a.$475,000

b.$170,000

c.$325,000

d.$850,000