$65.$ Ken sold a rental property for $$500,000.$ He received $$100,000$ in the current year and $$100,000$ each year for the next four years. Of the sales price, $$400,000$ was allocated to the building and the remaining $$100,000$ was allocated to the land. Ken purchased the property several years ago for $$300,000.$ When he initially purchased the property, he allocated $$225,000$ of the purchase price to the building and $$75,000$ to the land. Ken has claimed $$25,000$ of depreciation deductions over the years against the building. Ken had no other sales of $$1231$ or capital assets in the current year. For the year of the sale, determine Ken's recognized gain or loss and the character of Ken's gain, and calculate Ken's tax due because of the sale $($assum$-$ ing his marginal ordinary tax rate is $32$ percent$).($Hint: See the examples in Reg. $$1\mathrm{.}453-12.)$