Duy sold equipment that it uses in its business for $31,700. Duy bought the equipment a few years ago for $79,150 and has claimed $39,575 of depreciation expense. Assuming that this is Duy's only disposition during the year, what is the amount and character of Duy's gain or loss? O $7.875, $1245 loss. O $7,875, 51231 loss. O $47,450 ordinary loss. O $7,875 capital loss