Cesar sold a rental house that was held for $251,000. Cesar bought the rental house five years ago for $224,000 and claimed $50,500 of depreciation expense. What is the amount and character of Cesar's gain or loss assuming this is Cesars only asset sale of the year?

$27,000 ordinary and $50,500 unrecaptured 1250 gain

$27,000 1231 gain and $50,500 unrecaptured 1250 gain

$27,000 capital and $50,500 ordinary gain

$77,500 ordinary gain

None of the choices are correct.