Shannon bought an apartment building in July 2013 for $360,000 and sold it for $480,000 in2019. There was $77,994 of accumulated depreciation allowed on the apartment building. Assuming that Shannon is in the 35% tax bracket, how much of her gain is taxed at 25%?

a. $0.

b. $42,006.

c. $77,994.

d. $120,000.