Several years ago Nicolas, a timber dealer, purchased a tract of land with a substantial stand of trees on it. The land cost $56,600, and the timber cost $326,800. On the first day of 2022, the timber was appraised at $424,840. In August 2022, Nicolas cut the timber and sold it for $467,324. Nicolas elects to treat the cutting as a sale or exchange under 1231. As a result, Nicolas has a $ X 1231 gain and $ X of ordinary income.