This year, the Coral Company Inc. generated $650,000 from its routine business operations. In addition, it sold the following assets, all of which were held for more than 12 months. In addition in the five prior years the company recorded section 1231 losses of $72,000 in total which were never recaptured under the throwback rule. Compute Coral's taxable income for 2012 and the characterization of its section 1231 gains if any.

LAND-BUS                    280,000                           -0-                        390,000

BLDG*                         700,000                     500,000                     370,000

   *BLDG has $100,000 of accelerated depreciation, which is part of the $500,000 reflected above.