On March 17, a Calendar-Year Taxpayer Sells a Machine Used

Multiple Choice

On March 17, a calendar-year taxpayer sells a machine used in its business for $9,500.The machine was purchased sixteen months earlier for $9,000 and depreciation deductions of $1,800 have been taken.What is the amount and type of gain recognized on the sale?

A) $2,300 Section 1231 gain
B) $2,300 ordinary income
C) $1,800 Section 1245 recapture; $500 Section 1231 gain
D) $1,800 Section 1250 recapture; $500 Section 1231 gain