Twelve Years Ago, Mr

Twelve years ago, Mr. and Mrs. Bathgate purchased a business. This year, they sold the business for $750,000 lump-sum payment. The business had the following balance sheet assets. As a result of the sale, the Bathgates should recognize:

A) $324,900 ordinary gain.
B) $104,800 ordinary gain and $220,100 capital gain.
C) $51,000 ordinary gain and $273,900 Section 1231 gain.
D) None of these choices are correct.