26. (2 pts) Johnny Castle sold an office building that he used in his business for $800,000. Castle bought the building 10 years ago for $600,000 and has claimed $200,000 of depreciation expense. What is the amount and character of Castle's gain or loss? A) $400,000 $1231 gain. B) $200,000 ordinary and $200,000 $1231 gain. C) $400,000 ordinary gain. D) $400,000 capital gain. 27. (2 pts) The general rule regarding the exchanged basis in the new property received in a like-kind exchange is: A) The basis is equal to the fair market value of the new property. B) The basis is equal to the fair market value of the old property. C) The basis is equal to the adjusted basis of the old property. D) The basis is equal to the cost basis of the old property. E) All of the choices are correct