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Bateman Corporation sold an office building that it used in its business for $800,050. Bateman bought the building 10 years ago for $599,975 and has claimed $200,075 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

• None of the choices are correct.

• $200,075 ordinary and $200,075 1231 gain.

• $40,015 ordinary and $360,135 1231 gain.

• $400,150 capital gain.

• $400,150 ordinary gain.