14. In 2010, Mary sells for $15,000 a machine used in her business. The property was purchased on May 1, 2004, at a cost of $12,500. Mary has claimed depreciation on the machine of $4,750. What is the amount and nature of Mary’s gain as a result of the sale of the machine?

a. $7,250 Section 1231 gain

b. $7,250 ordinary income under Section 1245

c. $2,500 ordinary income and $4,750 Section 1231 gain

d. $2,500 Section 1231 gain and $4,750 ordinary income under Section 1245

e. None of the above LO 8.4