X purchased machinery for $60,000 to be used in their business. The cost recovery allowed and allowable for the two years the machine was used are computed as follows: Cost Recovery Allowed Cost Recovery Allowable Year 1 $20,000 $11,000 Year 2 16,000 17,000 If X sells the machinery after two years for $35,000. How much gain should X recognize? a. None of the choices presented are correct. b. $2,000 c. $3,000 d. $12,000 e. $11,000