Dr. Miller, a sole proprietor, bought medical equipment in 2016 for 600,000. He correctly took depreciation expense on this equipment of 312,000 and then sold this equipment in the current year before his retirement to a premier medical center in Canada for 625,000.

What if Dr. Miller sold the equipment for 250,000? What is the gain/loss?

A. 350000 capital loss

B. 38000 ordinary loss

C. 38000 capital loss

D. 350000 ordinary loss

E. None of the above