Oisa Corporation purchased Residential Real Estate at a cost of $350,000. Accelerated Depreciation in the amount of $156,000 had been correctly claimed on the property when the property was sold for $520,000. Straight-Line Depreciation would have been $120,000. On the sale, Oisa Corporation would recognize gain as follows:

		$326,000 Section 1250 Gain (Ordinary Income).
		$36,000 Section 1250 Gain (Ordinary Income) and $290,000 Section 1231 Gain (Long-Term Capital Gain).
		$60,000 Section 1250 Gain (Ordinary Income) and $266,000 Section 1231 Gain (Long-Term Capital Gain).
		$326,000 Section 1231 Gain (Long-Term Capital Gain).