Bateman Corporation sold an office building that it used in its business for $800,050. Bateman bought the building ten years ago for $599,975 and has claimed $200,075 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

$200,075 ordinary and $200,075 1231 gain.

None of the choices are correct.

$400,150 ordinary gain.

$40,015 ordinary and $360,135 1231 gain.

$400,150 capital gain.