Billy purchased business equipment for $100,000 in 2018 and has taken $20,000 of regular MACRS depreciation. Billy sells the equipment in 2022 for $110,000.

What is the amount and character of Billy's gain or loss?

a. $30,000 sec. 1231 gain

b. $30,000 sec. 1245 gain

c. $10,000 sec. 1245 gain & $20,000 sec. 1231 gain

d. $20,000 sec. 1245 gain & $10,000 sec. 1231 gain