Bateman Corporation sold an office building that it used in its business for $800,550. Bateman bought the building ten years ago for $599,725 and has claimed $200,825 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Choices:

a) $40,165 ordinary and $361,485 1231 gain.

b) $200,825 ordinary and $200,825 1231 gain.

c) $401,650 ordinary gain.

d) $401,650 capital gain.

e) None of the choices are correct.