Bateman Corporation sold an office building that it used in its business for $800,450. Bateman bought the building ten years ago for $599,775 and has claimed $200,675 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

• $401,350 capital gain.

• $200,675 ordinary and $200,675 1231 gain.

• $40,135 ordinary and $361,215 1231 gain.

• None of the choices are correct.

• $401,350 ordinary gain.