Liam Used His Auto 70 Percent for Business and 30

Multiple Choice

Liam used his auto 70 percent for business and 30 percent for personal use.He purchased it for $15,000 and has taken $5,460 of depreciation on it.What is his recognized gain on a sale for $12,000 and what is its character?

A) $2,940 Section 1231 gain
B) $3,360 Section 1245 ordinary income
C) $5,460 Section 1245 ordinary income
D) $6,540 Section 1231 gain