A business acquires a rental property several years ago for $562,000, with $112,000 of this amount being the estimated value of the land.At the beginning of the current year the UCC for the property is $374,561.During the current year, the property is sold for $843,000, with $262,000 of this amount being allocated to the land.Which of the following statements is correct?

A.

The business will have recapture of $75,439 and a capital gain of $131,000.

B.

The business will have a taxable capital gain of $281,000.

C.

The business will have recapture of $187,439.

D.

The business will have recapture of $75,439 and a capital gain of $281,000.

Please show all steps, calculations, explanations.