Exercise 17-22 (Algorithmic) (LO. 2) Several years ago Nicolas, a timber dealer, purchased a tract of land with a substantial stand of trees on it. The land cost $22,815, and the timber cost $450,000. On the first day of 2022 , the timber was appraised at $585,000. In August 2022, Nicolas cut the timber and sold it for $643,500. Nicolas elects to treat the cutting as a sale or exchange under 1231. As a result, Nicolas has a 1231 gain and $ of ordinary income