Hammond Inc. sells a building that it purchased in 2001 for $1 500 000.The building c

Hammond Inc., sells a building that it purchased in 2001 for $1,500,000.The building cost $1,000,000 and had an adjusted basis of $700,000 at the date of the sale.

I.Hammond has an $800,000 Section 1231 gain on the sale.

II.Hammond must report $300,000 of Unrecaptured Section 1250 gain.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

请帮忙给出正确答案和分析，谢谢！