Several years ago, Nicolas, a timber dealer, purchased a tract of land with a substantial stand of trees on it$.$ The land cost $$8,000,$ and the timber cost $$250,000.$ On the first day of $2024,$ the timber was appraised at $$325,000.$ In August $2024,$ Nicolas cut the timber and sold it for $$360,000.$ Nicolas elects to treat the cutting as a sale or exchange under $1231.$