B&I Inc Sold a Commercial Office Building Used in the Corporate

B&I Inc. sold a commercial office building used in the corporate business for $862,000. B&I purchased the building in 2006 for a cost of $700,000 and had deducted $167,200 MACRS depreciation through date of sale. B&I should characterize the $329,200 gain recognized on sale as:

A) $167,200 ordinary gain and $162,000 Section 1231 gain
B) Section 1231 gain
C) Capital gain
D) None of the above