Bartley Car Rental sells a rental care fo $12,000. The company bought the car 5 years ago for $30,000 and depreciated $25,000 of its cost while it was being rented. Select the best statement for the tax treatment of this sale from the list below.

Question options:

	Bartley has a loss of $18,000 on the sale of this care that will be an ordinary loss.
	Bartley has a gain of $7,000 on this sale that will all be taxed as ordinary income under Section 1245 recapture
	Bartley has a gain of $7,000 on this sale that will be taxed at favorable capital gains rates.
	none of the above