Albert's Sole Proprietorship Owns the Following Assets

Multiple Choice

Albert's sole proprietorship owns the following assets:

* Potential § 1245 recapture of $30,000.
** Straight-line depreciation was used.
Albert sells his sole proprietorship for $470,000.Calculate Albert's recognized gain or loss and classify it as capital or ordinary.

A) $200,000 ordinary income.
B) $200,000 capital gain.
C) $100,000 ordinary income and $100,000 capital gain.
D) $90,000 ordinary income and $110,000 capital gain.
E) None of the above.