In Year 5 Naxos Inc., a C corporation, sold Section 1250 property for $400,000 that had an adjusted basis of $250,000, resulting in a gain of $150,000. The original cost of the property, which Naxos had purchased in Year 1, was $350,000 and $100,000 of total depreciation had been taken on the property. Had straight-line depreciation been used, depreciation would have been $60,000. How should Naxos report the gain on its Year 5 tax return? Multiple Choice 0 $150,000 ordinary gain 0 $48,000 ordinary gain and $102,000 longterm capital gain 0 $52,000 ordinary gain and $98,000 longterm capital gain . $40,000 ordinary gain and $110,000 longterm capital gain