27 3.33 pts Kuong Inc. sold a commercial office building used in the corporate business for $1.5 million. Kuong purchased the building in 2000 for a cost of $1.4 million and had deducted $538,000 MACRS depreciation through date of sale. Kuong should characterize the $638,000 gain recognized on sale as: $127,600 ordinary gain and $510,400 Section 1231 gain O $538,000 ordinary gain and $100,000 Section 1231 gain $107,600 ordinary gain and $530,400 Section 1231 gain O Section 1231 gain