On March 17, a calendar-year taxpayer sells a machine used in its business for $9,500. The machine was purchased sixteen months earlier for $9,000 and depreciation deductions of $1,800 have been taken. What is the amount and type of gain recognized on the sale?

$2,300 Section 1231 gain

$2,300 ordinary income

$1,800 Section 1245 recapture; $500 Section 1231 gain

$1,800 Section 1250 recapture; $500 Section 1231 gain