Shelly purchased an office machine three years ago at $40,000. It was used 100% in business. She used MACRS 200DB to depreciate the remaining cost. The accumulated depreciation she claimed was $30,784. And the adjusted basis of the machine is $9,216. Had she used the straight-line method; the accumulated depreciation amount would be $24,000. She sold the machine at $25,000 in the current year. Which of the following statements is correct regarding the depreciation recapture rule?

a) The depreciation recapture rule does not apply, and she has a capital gain of $15,784.

b) The depreciation recapture rule applies since she disposed of the machine before the recovery period ends, and she has ordinary income of $15,784.

c) The depreciation recapture rule applies since she disposed of the machine before the recovery period ends, and she reports $6,784 as ordinary income and $9,000 as a longterm capital gain.

d) If Shelly took section 179 expense deduction in the year of the purchase, she would not subject to the recapture rule when she sold the machine in the current year