Yiorgos purchased a building in 2012 that he uses in his business. Yiorgos uses the straight-line method for the building. Yiorgos's original cost for the building is $525,000 and cost-recovery deductions (depreciation) are $175,000. Yiorgos is in the top tax bracket (his capital gain rate is 20%) and has never sold any other business assets. If the building is sold for $600,000, the tax results are

A) $250,000 Sec. 1231 gain, all taxable at 20%.

B) $250,000 unrecaptured Sec. 1250 gain, all taxable at 25%.

C) $250,000 Sec. 1231 gain, of which $175,000 is unrecaptured Sec. 1250 gain taxable at 25% and the $75,000 balance is taxable at 20% (as a Section 1231 gain).

D) $175,000 Sec. 1245 ordinary income, $75,000 Sec. 1231 gain taxable at 20%.