Ben Purchased an Apartment Building About 10 Years Ago, for $200,000

Ben purchased an apartment building about 10 years ago, for $200,000. The building has been depreciated over the appropriate recovery period using the straight-line method. On December 31, 2014, the building was sold for $220,000, when the accumulated depreciation was $62,500. Ben is in the highest tax bracket; on his 2014 tax return, he should report:

A) Section 1231 gain of $20,000 and ordinary income of $62,500
B) Section 1231 gain of $62,500 and ordinary income of $20,000
C) Ordinary income of $82,500
D) Section 1231 gain of $20,000 and "unrecaptured depreciation" taxed at 25 percent of $62,500
E) None of the above