Michael sells Sec. 1231 property this year, resulting in a $4,000 gain. This is the first time he has disposed of any Sec. 1231 property. Michaels tax rate is 10%. His tax on the Sec. 1231 gain will be

A) $0.

B) $400.

C) $600.

D) $1,120.

Please give the necessary description for my quick understanding!