7. Brad sold a rental house that he owned for $254,000. Brad bought the rental house five years ago for $221,000 and has claimed $52,000 of depreciation expense. What is the amount and character of Brad's gain or loss?

a.$33,000 ordinary and $52,000 unrecaptured 1250 gain.

b.$33,000 1231 gain and $52,000 unrecaptured 1250 gain.

c.$85,000 ordinary gain.

d.$85,000 capital gain.

None of the choices are correct.