Cassie owns equipment ($45,000 basis and $30,000 FMV) and a building ($152,000 basis and $158,000 FMV), which are used in Cassie's business. Cassie has used straight-line depreciation for both assets, which were acquired two years ago. Both the equipment and the building are destroyed in a fire, and Cassie collects insurance proceeds equal to the assets' FMV. The tax result to Cassie for this transaction is

a) 15,000 Sec. 1231 loss and a 6,000 ordinary gain b) 15,000 ordinary loss and a 6,000 ordinary gain c) 15,000 ordinary loss and a 6,000 sec 1231 gain d) 15,000 sec 1231 loss and a 6000 sec 1231 gain explain your answer.