Hammond Inc.，sells a building that it ...

单项选择题Hammond Inc.，sells a building that it purchased in 2001for $1，500，000.The building cost $1，000，000and had an adjusted basis of $700，000at the date of the sale. I.Hammond has an $800，000Section 1231gain on the sale. II.Hammond must report $300，000of Unrecaptured Section 1250gain.（）

A.Only statement I is correct
B.Only statement II is correct
C.Both statements are correct
D.Neither statement is correct

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