Harrison Corporation Sells a Building for $330,000 in the Current

Multiple Choice

Harrison Corporation sells a building for $330,000 in the current year. Harrison purchased the building in 2008 for $250,000 and had taken $20,000 in depreciation on the building up to the date of its sale. How should Harrison report the gain on the sale of the building?

A) Section 1231 gain of $100,000.
B) Ordinary income of $100,000.
C) Section 1231 gain of $80,000 and ordinary income of $20,000.
D) Section 1231 gain of $96,000 and ordinary income of $4,000.
E) Ordinary income of $96,000 and Section 1231 gain of $4,000.