A corporation owns an office building and land. The office building and land were acquired in 1978 for $1,100,000 and $80,000 respectively. During the current year, the properties are sold for $1,180,000 with 40% of the selling price being allocated to the land. The assets as shown on the corporation's books before their sale are as follows:

Building $1,100,000

Acc. Depreciation $980,000 (a) $120,000

Land $80,000

(a) if the straight line method of depreciation had been used, the accumulated depreciation would be $1,145,000.

a. What is the recognized gain due to the sale of the building?

b. What is the character of the recognized gain due to the sale of the building?

c. What is the recognized gain and character of the gain due to the sale of the land?