Quidik Corporation Sold a Machine for $80,000 That It Had

Multiple Choice

Quidik Corporation sold a machine for $80,000 that it had acquired three years ago for $68,000.If its adjusted basis when sold was $50,000, what should Quidik report on its tax return as a result of this sale?

A) Section 1245 recapture of $18,000; Section 1231 gain of $30,000;
B) Ordinary income of $12,000 and Section 1231 gain of $18,000
C) Section 1245 recapture of $18,000 and Section 1231 gain of $12,000;
D) Section 1231 gain of $38,000