During 2019, Paul sells residential rental property for $240,000, which he acquired in 1998 for $160,000. Paul has claimed straight-line depreciation on the building of $60,000. What is the amount and nature of Paul’s gain on the sale of the rental property? 

a. $140,000 ordinary income 

b. $80,000 “unrecaptured depreciation” and $60,000 ordinary gain 

c. $140,000 Section 1231 gain 

d. $80,000 Section 1231 gain, $60,000 “unrecaptured depreciation” 

e. None of the above