Five years ago, Corey purchased a warehouse for his business. Here are the costs he incurred:

$ to purchase the warehouse.

$ in legal fees associated with the purchase.

$ to improve the accessibility of loading dock area.

$ in property taxes.

$ for utilities.

Over those five years, he was able to claim $ in depreciation deductions using an accelerated depreciation method. This was $ more than straightline depreciation would have allowed.

When Corey sells the warehouse for $ how much of his gain will be characterized as Section gain ie taxed at a maximum rate of