Carl owns an office building and land that are used in his trade business. The office building and land were acquired in 1978 for $1,100,000 and $80,000 respectively. During the current year, the properties are sold for $1,180,000 with 15% of the selling price being allocated to the land. The assets as shown on the taxpayer's books are as follows:

Building $1,100,000

Accumulated depreciation 980,000(a) $120,000

Land 80,000

(a) If the straight-line method of depreciation had been used, the

accumulated depreciation would be $920,000.