Gloria owned a non-residential building, purchased in 2013, the original cost of which was $400,000, plus $150,000 for the cost of land. The UCC value of the building was $350,000, and the land and building were sold for $750,000 in 2019. The split of proceeds, the taxpayer used between land and building was $300,000 for building and $450,000 for land. Assuming that Gloria wishes to minimize her taxes, what are the tax implications regarding the sale?

(Hint: Apply Sec 13(21) restriction)

		A capital gain of $300,000 and a terminal loss of $60,000.
		A capital gain of $150,000 and a terminal loss of $60,000.
		A capital gain of $240,000 and a terminal loss of $0
		A capital gain of $250,000 and a terminal loss of $0