Heron Company purchases commercial realty on November 13, 1998, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2016, for $850,000.

a. If Heron is a C corporation, what is the amount of each type of gain recognized?

Character of Gain
Ordinary income under 1250 = _______
Ordinary income under 291 = ________
1231 gain = _________
Total recognized gain = _________

b. If Heron is a sole proprietorship, then the tax consequences of the sale of realty are ________ 291. The entire gain is treated as ___________ .