Determine the taxpayer's income and the treatment of the income.

a. On January 1, 1975, Glen Gopher purchased an office building for his business for \(\$ 1,000,000\). He sold the building on January 1, 2018, for \(\$ 1,250,000\). Glen used the accelerated depreciation method over a 40 -year life and his total depreciation deductions amounted to \(\$ 1,000,000\), of which \(\$ 37,500\) was depreciation taken before January 1, 1976. Straight-line depreciation would have been \(\$ 25,000\) a year. How much income does Glen recognize and how will it be treated?

b. Assume the facts of (a), except that the building was an apartment building rented to tenants. How much income does Glen recognize and how will it be treated?