A Corporation Sold a Warehouse During the Current Year How Much Gain Should the Corporation Report as Section 1231

Multiple Choice

A corporation sold a warehouse during the current year. The straight-line depreciation method was used. Information about the building is presented below: $$\begin{array} { | l | r | } \hline \text { Date acquired } & 1984 \\\hline \text { Cost } & \$ 800,000 \\\hline \text { Accumulated Depreciation - Straight-line } & 620,000 \\\hline \text { Selling Price } & 890,000 \\\hline\end{array}$$ How much gain should the corporation report as section 1231 gain?

A) $124,000
B) $620,000
C) $586,000
D) $710,000