Alejandro Purchased a Building in 1985,which He Uses in His

Multiple Choice

Alejandro purchased a building in 1985,which he uses in his manufacturing business.Alejandro uses the ACRS statutory rates to determine the cost-recovery deduction for the building.Alejandro's original cost for the building is $500,000 and cost-recovery deductions allowed are $500,000.If the building is sold for $800,000,the tax results to Alejandro are

A) $500,000 Sec.1245 ordinary income and $300,000 Sec.1231 gain.
B) $800,000 Sec.1245 ordinary income.
C) $500,000 Sec.1245 ordinary income and $300,000 Sec.1250 income.
D) $800,000 Sec.1231 gain.