|JKL, LP sold a commercial building for $1,500,000 (gross sales proceeds) that was originally purchased many years ago for $850,000. The net adjusted tax basis of building sold was $595,000; (after taking MACRS depreciation expense over the years in the amount of $255,000). Selling costs of this sales transaction were 2% of the gross sales proceeds. What is the amount of taxable gain recognized on this transaction and what is the character of this income? A. Ordinary income in the amount of $875,000. B. Capital gain in the amount of $875,000. C. Capital gain and recaptured section 1250 gain in the amounts of $395,000 and $255,000, respectively. D. Capital gain in the amount of $650,000. E. Capital gain and recaptured section 1250 gain in the amounts of $620,000 and $255,000, respectively