Butte sold a machine to a machine dealer for $50,000. Butte bought the machine for $50,000 several years ago and has claimed $12,500 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

A. 7,500; 1231 loss

B. 5,000; 1231 loss

C. 7,500 ordinary gain

D. 7,500 capital gain.

E. None of these