Sam sold his office loft that he used in his trade or business for $180,000. He had purchased the loft in 1997 for $100,000. Total depreciation taken on the loft was $25,000. His ordinary income is taxed at the 35% bracket.

This transaction will increase his tax liability by:

A) 25,259

B) 34,250

C) 36,750

D) None of the above