Brad sold a rental house that he owned for $247,500. Brad bought the rental house five years ago for $227,500 and has claimed $48,750 of depreciation expense. What is the amount and character of Brad's gain or loss?

A)$20,000 ordinary and $48,750 unrecaptured 1250 gain.

B)$20,000 1231 gain and $48,750 unrecaptured 1250 gain.

C)$20,000 capital and $48,750 ordinary gain.

D)$68,750 ordinary gain.

E)None of the choices are correct.