You just sold your business condominium for $425,000, net of transaction costs. You had purchased 10 years ago for $288,000 and had taken $73,000 of depreciation on it. What is the nature and character of the gain?

A. $73,000 is taxed as ordinary income under Section 1250 and $137,000 is a capital gain taxed under Section 1231.

B. The entire gain ($210,000) is taxed as ordinary income under Section 1250 because it is property used in a business.

C. $73,000 is considered an unrecognized gain, taxed at a special gain rate of 25%, and $137,000 is taxed at the most favorable rate (15%/20%) under Section 1231.

D. The entire gain of $210,000 is taxed as unrecognized gain, at a special gain rate of 25%. (Option D. is incorrect)