A noncorporate - owned factory building with an adjusted basis of $ 5 0 . 0 0 0 was sold during the current year for $ 9 0 , 0 0 0 . The property was purchased new on January 1 , 1 9 8 0 . The accelerated depreciation amounted to $ 4 5 , 0 0 0 , while straight - line depreciation would have been $ 3 5 , 0 0 0 . How much is to be reported as ordinary income? A . $ 4 0 , 0 0 0 B . $ 1 0 . 0 0 0 C . $ 3 5 , 0 0 0 D . $ 5 , 0 0 0