Marta purchased residential rental property for $600,000 on January 1, 1985. Total ACRS deductions for 1985 through the date of sale amounted to $600,000. If the straight-line method of depreciation had been used, depreciation would have been $600,000. The property is sold for $750,000 on January 1 of the current year. The amount and character of the gain is
A. $150,000 Sec. 1231 gain and $600,000 ordinary income.
B. $750,000 ordinary gain due to Sec 1245.
C. $750,000 Sec. 1231 gain.
D. $750,000 ordinary gain due to Sec. 1250.
Answer: C
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