Tom acquired a warehouse for business purposes on August 30, 2000. The building cost $420,000. He took $207,000 of depreciation on the building, $18,000 home office expenses, repairs$7,000 and then sold it for $520,000 on July 1, 2021. What are the amount and nature of Toms gain or loss on the sale of the warehouse?

a. What is the adjusted basis for the warehouse?

b. What amount of the gain or loss is realized on the sale of the warehouse?