Recapture of Soil and Water Conservation Expenditures. Bob owns farmland with a $600,000 basis, and he elects to expense $100,000 of expenditures...

Recapture of Soil and Water Conservation Expenditures. Bob owns farmland with a

$600,000 basis, and he elects to expense $100,000 of expenditures incurred for soil and

water conservation purposes. Bob sells the farmland after farming for seven years and

four months. What is the amount of the recognized gain and the character of the gain if

the selling price is

a. $825,000

b. $615,000