Section 1245 Recapture Rule (LO. 8) Avalon, Inc., buys equipment costing $152,700 in 2016, and sells it in 2019. Avalon deducts $97,600 in depreciation on the equipment before the sale. Identify the amount and character of the gain or loss on the sale of the equipment if the selling price is as follows: If an amount is zero, enter "O". Sales Total Gain/Loss Section 1231 Gain/Loss Ordinary Income/Loss Price X X 14,000 X a. $91,500 $ b. $159,700 $ C. $38,400 $ 41,000 24,000 13,000 X $ $ $ 32,000 14,000 15,000 $ $ $ 25,000 X A * 15,000 A