Butte sold a machine to a machine dealer for $51,900. Butte bought the machine for $53,100 several years ago and has claimed $11,550 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

Multiple Choice

• $10,350 1231 loss.

• $1,200 1231 loss.

• $10,350 ordinary gain.

• $10,350 capital gain.

• None of the choices are correct.