What is the amount and character of bateman corp gain

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Problem 1: Bateman Corporation sold an office building that it used in its business for $800,550. Bateman bought the building ten years ago for $599,725 and has claimed $200,825 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Option 1: $40,165 ordinary and $361,485 §1231 gain.
Option 2: $200,825 ordinary and $200,825 §1231 gain.
Option 3: $401,650 ordinary gain.
Option 4: $401,650 capital gain.
Option 5: None of the choices are correct.

Reference no: EM132990416

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