Bateman Corporation sold an office building that it used in its business for $800,300. Bateman bought the building ten years ago for $599,850 and has claimed $200,450 of depreciation expense. What is the amount and character of Bateman's gain or loss?

$40,090 ordinary and $360,810 1231 gain.

$200,450 ordinary and $200,450 1231 gain.

$400,900 ordinary gain.

$400,900 capital gain.

None of the choices are correct.