15. During 2010, Paul sells residential rental property for $300,000, which he acquired in 1992 for $150,000. Paul has claimed straight-line depreciation on the building of

$57,525. What is the amount and nature of Paul’s gain on the sale of the rental property?

a. $207,525 Section 1231 gain

b. $150,000 Section 1231 gain, $57,525 ‘‘unrecaptured depreciation’’

c. $167,400 Section 1231 gain, $57,525 ordinary income

d. $190,125 Section 1231 gain, $17,400 ‘‘unrecaptured depreciation’’

e. None of the above LO 8.4