can you please post an explanation

20) Derik sold a machine to a dealer for $50,600. Derik bought the machine for $54,400 several years ago and has claimed $12,200 of depreciation expense. How much is the amount and what is the character of Derik gain or loss? A $8,400 capital gain. B. None of the choices are correct. C. $3,800 $1231 loss D. 58.400 ordinary gain E $8,400 $1231 loss