Exercise 3-23 (Algorithmic) (LO. 1) Aqua Corporation purchases nonresidential real property on May 8, 2018, for $2,570,000. Straight-line cost recovery is taken in the amount of $257,000 before the property is sold on November 27, 2021, for $3,855,000. a. Compute the amount of Aqua's recognized gain on the sale of the realty. $ b. Determine the amount of the recognized gain that is treated as 1231 gain and the amount that is treated as 1250 recapture (ordinary income due to 291). 1231 gain: $ 1250 recapture (ordinary income due to 291): $