Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago for $599,900 and has claimed $200,300 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

• $400,600 capital gain.

• $400,600 ordinary gain.

• None of the choices are correct.

• $200,300 ordinary and $200,300 1231 gain.

• $40,060 ordinary and $360,540 1231 gain.