On June 1, 2014, Skylark Enterprises (not a corporation) acquired a retail store building for $500,000 (with $100,000 being allocated to the land). The store building was 39-year real property, and the straight-line cost recovery method was used. The property was sold on June 21, 2018, for $385,000.
a. Compute the cost recovery and adjusted basis for the building using Exhibit 8.8 from Chapter 8.
b. What are the amount and nature of Skylark's gain or loss from disposition of the property? What amount, if any, of the gain is un-recaptured § 1250 gain?

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EXHIBIT 8.8 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* (Percentage Rates) For Property Placed in Service after December 31,1986:27.5-Year Residential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 2 3 8 10 11 12 3.485 3.182 1.970 1.667 1364 1.061 0.152 2.879 2.576 2.273 0.758 0.455 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 19-27 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 28 1.970 2273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.667 1.364 For Property Placed in Service after December 31,1986, and before May 13,1993:31.5-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 2 3 6. 8 9. 10 11 12 4 5 1.984 3.042 2.778 2.513 2.249 1.720 1.455 1.190 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 20-31 1.720 1.984 3.042 32 2.249 2.513 2.778 3.175 3.175 3.175 3.175 3.175 3.175 1.190 33 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.661 0.926 1.455 0.397 For Property Placed in Service after May 12,1993: 39-Year Nonresidential Real Property The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Recovery Year(s) 3 8 10 11 12 4 2.461 2.247 2.033 1.819 1.605 1.391 0.963 0.749 0.535 0.321 0.107 1.177 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 2.247 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.461