Bateman Corporation sold an office building that it used in its business for $800,800. Bateman bought the building 10 years ago for $599,600 and has claimed $201,200 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

• $40,240 ordinary and $362,160 1231 gain.

• $201,200 ordinary and $201,200 1231 gain.

• $402,400 ordinary gain.

• $402,400 capital gain.

• None of the choices are correct.