Ricardo acquired a warehouse for business purposes on August 30, 1998. The building cost $460,000. He took $271,400 of depreciation on the building, and then sold it for $557,500 on July 1, 2017. What are the amount and nature of Ricardo's gain or loss on the sale of the warehouse?

1.What amount of the gain or loss is unrecaptured?

2.What amount of the gain or loss qualifies as a 1231 gain or loss?