Octet Corporation Placed a Small Storage Building in Service in 1999.Octet's

Multiple Choice

Octet Corporation placed a small storage building in service in 1999.Octet's original cost for the building is $800,000 and the cost recovery deductions are $300,000.This year the building is sold for $1,100,000. The amount and character of the gain are

A) Ordinary gain of $60,000 and Sec.1231 gain of $540,000.
B) Ordinary gain of $300,000 and Sec.1231 gain of $300,000.
C) Ordinary gain of $600,000.
D) Sec.1231 gain of $600,000.