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 in an installment sale for 625,000 and he held the note for the buyer, and received 50,000 cash. The note receivable is for 575,000 interest only of 14375 for the 1st year.

A. 0 gain

B. 312000 ordinary gain in year of sale - section 1245 recapture and 2000 section 1231 capital gain

C. 50000 ordinary gain in year of sale - 1245 recapture and 2000 section 1231 capital gain

D. 25000 capital gain in year of sale

E. None of the above