Bateman Corporation sold an office building that it used in its business for $800,400. Bateman bought the building ten years ago for $599,800 and has claimed $200,600 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

a. $40,120 ordinary and $361,080 1231 gain.

b. $200,600 ordinary and $200,600 1231 gain.

c. $401,200 ordinary gain.

d. $401,200 capital gain.

e. None of the choices are correct.