Gerdie lost $$25,000$ from the destruction of her barn on her active farm due to an Iowa tornado. $($It was really blowing out there, that I can tell you.$)$ She also sold machinery for $$42,000$ that she initially paid $$35,000$ for and took $100\%$ bonus depreciation on$.$ What is the best description of the tax treatment of these $2$ transactions presuming she had no other property transactions for the year?

Group of answer choices

She recognizes a $$25,000$ ordinary loss and $$42,000$ capital gain

She recognizes $$67,000$ in ordinary income

She recognizes $$10,000$ in ordinary income and a $$7,000$ capital gain

She recognizes $$25,000$ in ordinary income and $$42,000$ capital loss

She recognizes a $$25,000$ ordinary loss, $$35,000$ in U$1250$G$,$ and $$7,000$ capital gain