Hoover, LP sold a commercial office building used in the corporate business for $600,000. Hoover purchased the building in 1991 for a cost of $700,000 and had deducted $400,000 in Section 1250 depreciation through date of sale. Hoover should characterize the $300,000 gain recognized on sale as:

A. $400,000 unrecaptured Section 1250 gain and $100,000 Section 1231 gain. B. $400,000 unrecaptured Section 1250 gain and $100,000 Section 1231 loss.

C. $300,000 Section 1231 gain.

D. $300,000 Ordinary gain. E. None of the above.