The Breakfast Club Company purchased land and building on January 1, 2003 for a combined price of $285,000. The Breakfast Club Company allocated 75% of the purchase price to the building and 25% to the land to approximate their individual fair values. The building was depreciated using the double diminishing-balance and accumulated depreciation to date was correctly computed as $190,000. The land and building was subsequently sold on June 18, 2021 for a combined price of $650,000. What gain or loss on disposal of these assets would be reported in 2021?

a.) gain of $95,000

b.) gain of $555,000

c.)gain of $578,750

d.)gain of $626,250