Linda sold equipment used in her business for $35,000. The equipment cost $27,000 and Linda had properly claimed MACRS deductions totaling $10,000. Straight-line depreciation, if it had been used, would have been $7,000. What is the amount and character of the gain?

Sec. 1245 Sec. 1231

a. $ 3,000 $15,000

b. $ 7,000 $11,000

C. $10,000 $ 8,000

d. $18,000 $0

e. none of the above