Bill inherited an apartment building from his mother when she died. The mother had a tax basis of $3,000,000 for the apartment building when she died and the apartment building was worth $6,200,000 at the time of her death. It was worth $6,300,000 six months after his mothers death. His mother had owned the apartment building for 12 years. Bill sells the apartment building 9 months later for $6,500,000. He had deducted depreciation of $49,000.

i)What is the amount of Bills recognized gain or loss?

ii)Is the recognized gain or loss short term or long term? Discuss why.