Butte sold a machine to a machine dealer for $51,600. Butte bought the machine for $53,400 several years ago and has claimed $11,700 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

Multiple Choice

• $9,900 1231 loss.

• $1,800 1231 loss.

• $9,900 ordinary gain.

• $9,900 capital gain.

• None of the choices are correct.