Alpha sold machinery that it used in its business to Beta, a related entity, for $40,000. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $50,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Alpha's gain?

		$20,000 ordinary income under 1239
		$10,000 ordinary gain and $10,000 1231 gain
		$20,000 1231 gain
		$20,000 capital gain
		None of the choices are correct.