Four Years Ago,Otto Purchased Farmland for $600,000 and Spent an Additional

Multiple Choice

Four years ago,Otto purchased farmland for $600,000 and spent an additional $40,000 on soil and water conservation which was deducted in the year of purchase.Otto has just sold the land for $900,000.How much of the $300,000 gain will be treated as ordinary income?

A) $0
B) $24,000
C) $40,000
D) $300,000