Clarise Bought a Building Three Years Ago for $180,000 to Use

Multiple Choice

Clarise bought a building three years ago for $180,000 to use in her business.The straight-line method of depreciation was used and $15,000 of depreciation deductions were allowed.During the current year,Clarise sells the building to her wholly owned corporation for $235,000.The tax results to Clarise are

A) $70,000 ordinary income.
B) $70,000 of Sec.1231 gain.
C) $55,000 ordinary income and $15,000 Sec.1231 gain.
D) $15,000 of ordinary income and $55,000 Sec.1231 gain.