Julian owns and operates a manufacturing plant as a sole proprietor. He purchased a specialized machine used in the manufacturing process for $20,000 several years ago. Julian sold the machine for $24,000 after claiming $9,505 of cost recovery deductions. What is the amount and nature (character) of the gain or loss resulting from this disposition? A) $13,505 of long-term capital gain B) $13,505 of ordinary income C) $4,000 ordinary income, $9,505 long-term capital gain D) $9,505 ordinary income, $4,000 long-term capital gain