Henry, a long-time client of yours, recently sold a few assets from his business. He brings the following information to you hoping you can help him make heads or tails of it:

-He sold an office building that he owned and used in his business. He purchased it 15 years ago for $800,000. Since then, he has added major improvements to the building, totaling $15,789.

-The depreciation taken on the building and the improvements through the date of the sale is $400,000.

-He sold the building for $978,000.

how do I determine gain or loss on the sale and how it will be taxed or deducted.