Hank inherited tangible personal property in 2012. The property was depreciated by the deceased (Hank’s father), and Hank will also depreciate it. At the date of the deceased’s death, the property was worth $500,000. The deceased had purchased it for $900,000 and taken $600,000 of depreciation on the property. Hank takes $200,000 of depreciation on the property before selling it for $400,000 in 2014. What is the nature of the recognized gain/loss when Hank sells the property?
a. $100,000 ordinary income.
b. $100,000 capital gain.
c. $100,000 capital loss.
d. $100,000 ordinary loss.