Identify the Type(s) of Gain or Loss That Would Be

Multiple Choice

Identify the type(s) of gain or loss that would be recognized on the following asset sales as capital, Section 1231, ordinary, Section 1245 recapture, Section 291 recapture, or Section 1250 unrecaptured gain.
-Lopez Corporation sold equipment that is had purchased for $300,000 ($100,000 cash and a note for $200,000) four years ago.. As of the date of sale, Lopez had claimed $187,500 in accumulated depreciation on this equipment and had made $50,000 in principal payments on the note. Lopez received $80,000 cash and a note for $100,000 in addition to the purchaser assuming Lopez's $150,000 note on the equipment. What is Lopez Corporation's realized gain on the sale?

A) $217,500
B) $187,500
C) $112,500
D) $67,500