PG Incorporated was incorporated in 2015 and adopted a calendar year. Here is a schedule of PG's net Section 1231 gains and (losses) reported on its tax returns through 2020.

2015	2016	2017	2018	2019	2020
$-0-	$(3,800)	$9,040	$(15,900)	$-0-	$-0-

In 2021, PG recognized a $25,000 gain on the sale of business land. How is this gain characterized on PG's tax return?

Multiple Choice

• $19,700 ordinary gain and $5,300 Section 1231 gain.

• $25,000 ordinary gain.

• $15,900 ordinary gain and $9,100 Section 1231 gain.

• $25,000 Section 1231 gain.