I:13-47 Secs. 1231 and 1250-Real Property Placed in Service Before 1981. Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year, the properties are sold for $900,000 with 20% of the selling price being allocated to the land. The assets as shown on the taxpayer’s books before their sale are as follows:

Building $800,000 Accumulated depreciation 690,000 a $110,000 Land 100,000 aIf the straight-line method of depreciation had been used, the accumulated depreciation would be $560,000.

a. What is the recognized gain due to the sale of the building?

b. What is the character of the recognized gain due to the sale of the building?

c. What is the recognized gain and character of the gain due to the sale of the land?