In 2023, Miami Hawk Properties, Inc. sold two non-depreciable operating assets, realizing a ($10,000) loss on Asset 1 and a $35,000 gain on Asset 2. These were the only 1231 asset dispositions during the tax year. Miami Hawk also had an unused ($4,000) net capital loss carryforward. In previous tax years Miami Hawk reported the following 1231 gains and (losses) on its tax returns: Tax Year 1231 Gain and 2017 2018 1231 Gains and (Losses) Reported on Tax Returns 2019 2020 2021 2022 (5,000) 10,000 (Loss) (15,000) 0 (5,200) 0 How is the gain characterized on Miami Hawk's 2023 tax return?