In 2022, depreciable property with a capital cost of $100,000 and a UCC balance of $79,400 at the end of the taxation year, is sold for $103,000. The carrying value for accounting purposes was $83,400. What are the income tax consequences of the sale?

a. A capital gain of $1,500.

b. A capital gain of $3,000 and recapture of $20,600. (This option is correct. However I'd like to know the solution step-by-step)

c. A capital gain of $23,600.

d. Recapture of $23,600.