On March 1 of the current year, Reiter, an individual, sold an office building for $300,000 that had an adjusted basis of $220,000, resulting in a gain of $80,000. Reiter had purchased the building for $260,000 on April 1 of the previous year, and $30,000 of the total depreciation taken took advantage of a special tax incentive program Reiter qualified for. How should Reiter report this gain on the current year tax return?
a. $80,000 ordinary gain
b. $30,000 ordinary gain and $50,000 long-term capital gain
c. $50,000 ordinary gain and $30,000 long-term capital gain
d. $40,000 ordinary gain and $40,000 short-term capital gain