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