A taxpayer purchased business machinery on Feb 16, 2012, for $25,000. The machinery was sold for $26,000 on Nov 10, 2013. Depreciation information is as follows: Accelerated depreciation taken $9,000 Straight-line depreciation (7-year life) would have been $5,000 What is the gain or loss on the sale of this machinery, and how will it be treated on the tax return? 1)$4,000 ordinary income and $6,000 section 1231 gain. 2)$4,000 ordinary income and $6,000 long term capital gain. 3)$9,000 ordinary income and $1,000 section 1231 gain. 4)$9,000 ordinary income and $1,000 long term capital gain. 5)none of the above.