What is the amount and character of tec gain


On May 8, 2008 Tec Manufacturing purchases $300,000 of five-year equipment and elected to expense $100,000 under Sec. 179. In 2009 Tec sells the equipment for $250,000. MACRS depreciation deductions for 2008 and 2009 total $72,000, excluding the Sec. 179 deduction. What is the amount and character of Tec's gain?

A) $100,000 Sec. 1231 gain and $22,000 of Sec. 1245 gain

B) $22,000 Sec. 1245 gain

C) $122,000 Sec. 1245 gain

D) $50,000 Sec. 1231 loss

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Accounting Basics: What is the amount and character of tec gain
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