Bateman Corporation sold an office building that it used in its business for $800,600. Bateman bought the building ten years ago for $599,700 and has claimed $200,900 of depreciation expense. What is the amount and character of Bateman's gain or loss?

$40,180 ordinary and $361,620 1231 gain.

$200,900 ordinary and $200,900 1231 gain.

$401,800 ordinary gain.

$401,800 capital gain.

None of the choices are correct.