Alpha sold machinery that it used in its business to Beta, a related entity, for $$40,500.$ Beta used the machinery in its business. Alpha bought the machinery a few years ago for $$49,500$ and has claimed $$30,500$ of depreciation expense. What is the amount and character of Alpha's gain?

Multiple Choice

$$21,500$ ordinary income under $1239.$

$$10,000$ ordinary gain and $$11,5001231$ gain.

$$21,5001231$ gain.

$$21,500$ capital gain.

None of the choices are correct.