Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.

A)$17,800 Section 1231 gain

B)$22,800 ordinary gain and $5,000 Section 1231 loss

C)$17,800 ordinary gain