Butte Sold a Machine to a Machine Dealer for $51,700

Multiple Choice

Butte sold a machine to a machine dealer for $51,700. Butte bought the machine for $53,300 several years ago and has claimed $11,650 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

A) $10,050 §1231 loss.
B) $1,600 §1231 loss.
C) $10,050 ordinary gain.
D) $10,050 capital gain.
E) None of the choices are correct.