Bateman Corporation Sold an Office Building That It Used in Its

Multiple Choice

Bateman Corporation sold an office building that it used in its business for $800,750. Bateman bought the building 10 years ago for $599,625 and has claimed $201,125 of depreciation expense. What is the amount and character of Bateman's gain or loss?

A) $40,225 ordinary and $362,025 §1231 gain.
B) $201,125 ordinary and $201,125 §1231 gain.
C) $402,250 ordinary gain.
D) $402,250 capital gain.
E) None of the choices are correct.