58. On January 1, 1985, Ivan Innkeeper purchased an office building for $900,000. He used the ACRS statutory (accelerated) depreciation method and took $900,000 depreciation before he sold the building $950,000 on January 1, 2020. Straight-line depreciation would have been $900,000.

a. How much income does Ivan recognize and how will it be treated?

b. What would your answer be to (a) if he had used the optional straight-line method?

Assume the same facts except the building was an apartment building.

a. How much income does Ivan recognize and how will it be treated?

b. What would your answer be to (a) if he had used the optional straight-line method?