Six years ago, Corporation CN purchased a business and capitalized $200,000 of the purchase price as goodwill. Through this year, CN has deducted $74,000 amortization with respect to this goodwill. At the end of the year, CN sold the business for $2,000,000, $250,000 of which was allocable to goodwill. Determine the amount and character of CNs gain from its sale of goodwill.

Ordinary income?

Section 1231 gain

Realized and recognized gain