Mr. and Mrs. Churchill operate a small business. This year, the Churchills sold a commercial office building used in their business for $1.5 million. They purchased the building in 2000 for a cost of $1.4 million and had deducted $538,000 MACRS depreciation through date of sale. The Churchills should characterize the $638,000 gain recognized on sale as: Multiple Choice Ordinary gain Capital gain Section 1231 gain $538,000 ordinary gain and $100,000 Section 1231 gain