On April 4, 2017, Mexco sold stock it held as an investment. It had a $300,000 short-term capital loss on the sale. It also sold a building, equipment, and the land under the building on July 1, 2017. Information about each asset is presented below. Mexco used MACRS depreciation on the equipment and straight-line depreciation on the building. Additionally, Mexco had a $75,000 Code Sec. 1231 loss last year (and it has no Code Sec. 1231 gains or losses in previous years). Mexco did not sell any other assets this year. What are the tax results of the sale?

	Building	Equipment	Land
Cost	$700,000	$200,000	$100,000
Accumulated depreciation to sale date	400,000	130,000
Amount realized on the sale	500,000	90,000	300,000