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Red Company sold machinery for $45,000 on December 23, 2016. The machinery had been acquired...

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Accounting

Red 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.

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