Using the information from Question 14 and the following information, if Nancy chooses to sell the rental property five years later, how would she report her gain/loss on the sale of the rental house (not including the land)? Note: For this question, there was no $2,000 casualty loss deduction. Sale price of house (not including the land): Sale price of land: Purchase price of house: FMV of house at conversion: $ 275,000 $ 50,000 $ 160,000 $ 150,000 Depreciation - MACRS (straight line): Permanent improvements: Purchase price of land: FMV of land at conversion: $ 24,317 $ 20,000 $ 20,000 $ 30,000 a) b) c) d) $149,317 in Section 1231 gain $ 24,317 in Section 1250 gain; $125,000 in ordinary income $ 24,317 in Section 1250 gain; $125,000 in Section 1231 gain $119,317 in Section 1250 gain; $ 30,000 in Section 1231 gain