Jake purchased a $300,000 earthmover for his business. He sold the earthmover for $245,000 after taking $210,000 of depreciation. What is the nature and amount of the gain or loss on the sale?
A. $90,000 Section 1245 ordinary income and $65,000 Section 1231 gain.
B. $55,000 Section 1245 ordinary income and $100,000 Section 1231 gain.
C. $155,000 Section 1245 ordinary income.
D. $155,000 Section 1231 gain.
Answer: C
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