Shawn (a single taxpayer) purchased a slope-side duplex (a residential building with 2 identical units) in 2007 for $500,000. Since the purchase, he has lived in one unit as his principal residence and rented the other unit to snowboarders, treating it as rental property and in properly deducting $110,000 depreciation under MACRS. On 3/13/19, Shawn sold the duplex for $900,000.

Required: Determine the amount of gain (loss) recognized by Shawn and its character (including the applicable LTCG rate 15%, 25%, or 28%).

the answers are $110,000 25%ltcg and 15% $200,000. but why is it $200,000 and not $400,000? can you show the math