In 1985, Ocean Corporation sells a building he had held for several years for $80,000. The building cost $60,000 and he has taken $40,000 of depreciation on the building. Of that deprecation, $5,000 is in excess of straight-line depreciation. Compute the gain and state the type/nature of the gain where necessary.

How will the answer be different if Ocean Corporation sells the building in 2016?