Blue Company Sold Machinery for $45,000 on December 23,2016

Multiple Choice

Blue Company sold machinery for $45,000 on December 23,2016.The machinery had been acquired on April 1,2014,for $69,000 and its adjusted basis was $34,200.The § 1231 gain,§ 1245 recapture gain,and § 1231 loss from this transaction are:

A) $0 § 1231 gain,$10,800 § 1245 recapture gain,$0 § 1231 loss.
B) $0 § 1231 gain,$0 § 1245 recapture gain,$14,800 § 1231 loss.
C) $0 § 1231 gain,$34,200 § 1245 recapture gain,$0 § 1231 loss.
D) $0 § 1231 gain,$10,800 § 1245 recapture gain,$34,200 § 1231 loss.
E) None of the above.