Blue Company Sold Machinery for $45,000 on December 23, 2017

Multiple Choice

Blue Company sold machinery for $45,000 on December 23, 2017. The machinery had been acquired on April 1, 2015, 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.