Benson Company purchased a drill press on November 13, 2018. The original basis is $30,000. Benson takes depreciation of $18,000 on the drill. Benson sells the drill press on January 3, 2022, for $50,000. What are the tax effects of this transaction for Benson?

Group of answer choices

Benson has a 1231 gain of $38,000

Benson has a 1231 gain of $18,000; and a 1245 gain of $20,000

Benson has a 1231 loss of ($14,000).

Benson has a 1231 gain of $20,000; 1245 gain of $18,000