Bob Jones acquired a machine for use in his business on January 1, 20X1 for $50,000. MACRS depreciation totaling $15,000 was taken on the machine. Straight-line depreciation, had it been taken, would have been $9,000. Jones sold the machine on January 31, 20X3 for $45,000. What is the amount and character of Jones gain on the sale of the machine?

		Section 1231 Gain Section 1245 Gain $0 $10,000
		Section 1231 Gain Section 1245 Gain $1,000 $9,000
		Section 1231 Gain Section 1245 Gain $9,000 $1,000
		Section 1231 Gain Section 1245 Gain $10,000 $0