Hugh sold a machine he uses in his business for $50,000 in the current year. He bought the machine for $55,000 several years ago and has since claimed $13,500 of depreciation. What is the amount and character of Hugh's gain (loss) on the sale? Select one: O A. ($8,500) 1231 loss O B. ($5,000) 1231 loss O C. $8,500 capital gain D. $8,500 ordinary gain 0

Hugh sold a machine he uses in his business for $50,000 in the current year. He bought the machine for $55,000 severat years ago and has since claimed $13,500 of depreciation. What is the amount and character of Hugh's gain (loss) on the sale? Select one: A. ($8,500)51231 loss B. ($5,000)$1231 loss C. $8,500 capital gain D. $8,500 ordinary gain