(Answered) Question - during 2015 paul sells residential rental

Accounting

Question - During 2015, Paul sells residential rental property for $280,000, which he acquired in 1995 for $145,000. Paul has claimed straight-line depreciation on the building of $54,000. What is the amount and nature of Paul's gain on the sale of the rental property?

a. $189,500 Section 1231 gain

b. $145,000 Section 1231 gain, $54,500 "unrecaptured depreciation"

c. $54,500 Section 1231 gain, $189,500 ordinary income

d. $135,000 Section 1231 gain, $54,5000 "unrecaptured depreciation"

e. none of the above

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