Billy purchased business equipment for $50,000 in and has taken $20,000 of regular MACRS depreciation. Billy sells the equipment in 2020 for $40,000. What is the amount and character of Billy's gain or loss?

A. Sec. 1231 gain $10,000

B. Sec. 1245 gain $10,000

C. Sec. 1231 loss $10,000

D. Sec. 1245 gain $10,000

Sec. 1231 gain $10,000