Jose, a calendar year taxpayer sold 2 Section 1231 assets during the year. He had $5,000 of non-recaptured net Section 1231 losses from 3 years ago. What is the amount and character of the gain?

Asset	Purchase Date	Cost	Accumulated Depreciation	Sales Price	Sales Date
Equipment	11/12/2016	$105,000	$46,000	$125,000	8/19/19
Computer	4/12/2017	$20,000	$13,500	$3,750	8/19/19

A. $5,000 as ordinary income, gain of $59,500 subject to 1245 recapture and a L/T capital loss of $1,250. B. $5,000 as ordinary income, gain of $46,000 subject to 1245 recapture and a L/T capital gain of $12,250. C. $5,000 as ordinary loss, gain of $46,000 subject to 1250 recapture and a L/T capital gain of $17,250 D. $49,750 of gain subject to 1245 recapture and a L/T capital gain of $13,500.

E. $5,000 as ordinary income, gain of $61,000 subject to 1245 recapture and a L/T capital loss of $2,750