16. Jeanie acquires an apartment building in 1991 for $260,000 and sells it for $500,000 in 2010. At the time of sale there is $78,000 of accumulated straight-line depreciation on the apartment building. Assuming Jeanie is in the highest tax bracket for ordinary income, how much of her gain is taxed at 25 percent?

a. None

b. $240,000

c. $318,000

d. $162,000

e. $78,000