Orange Company had machinery completely destroyed by a fire on December 23, 2020. The machinery had been acquired on April 1, 2018, for $49,000 and its adjusted basis was $14,200. Orange received $30,000 of insurance proceeds for the machinery and did not replace it. This was Orange's only casualty or theft event for the year. As a result of this event, Orange has: $14,200 1245 recapture gain. $4,200 ordinary loss. $15,800 1245 recapture gain. $30,000 1231 gain.