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Butte sold a machine to a machine dealer for $51,900. Butte bought the machine for $53,100...

Butte sold a machine to a machine dealer for $51,900. Butte bought the machine for $53,100 several years ago and has claimed $11,550 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

Multiple Choice

  • $10,350 §1231 loss.

  • $1,200 §1231 loss.

  • $10,350 ordinary gain.

  • $10,350 capital gain.

  • None of the choices are correct.

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