In 2014, Mary sells for $15,000 a machine used in her business. The property was purchased on May 1, 2012, at a cost of $12,500. Mary has claimed depreciation on the machine of $4,750. What is the amount and nature of Mary's gain as a result of sale of the machine?
A. $7,250 Section 1231
B. $7,250 ordinary income under Section 1245
C. $2,500 ordinary income and $4,750 Section 1231 gain
D. $2,500 Section 1231 gain and $4,750 ordinary income under Section 1245
E. None of the above