Sounds like a job for a Marantz MCR611 and either Dali Spektor 2- or Monitor Audio Bronze 2 speakers. From your budget you'd have cash left over for speaker stands and some 1.5mm copper speaker cable.
I use a Dali Kubic One for our living room with Dali Sub and its worth every penny it has 2 optical which is great one for TV and 1 for Music i have a PI3 digi connected to one optical for Music and it sounds great
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