Adrian owns a residential apartment building. Although he enjoys managing the building, real estate prices in his area have sky-rocketed recently, and Adrian thinks he could make a good profit by selling the building. Adrian originally purchased the building for $800,000 and took depreciation deductions of $500,000. Straight-line depreciation would have been $450,000. What are the tax consequences if Adrian sells the building for $3,000,000?

Adrian will have ordinary income of $50,000.

Adrian will have $500,000 of unrecaptured Section 1250 gain.

Adrian will have capital gains of $1,700,000.

None of the above.