Smith Co. sells a machine during the year for \(\$ 100,000\). Smith acquired the machine for \(\$ 140,000\). At the time of sale, the machine's adjusted basis was \(\$ 47,200\). Smith Co.'s recognized gain on the sale is:

a. \(\$ 52,800\) Code Sec. 1231 gain

b. \(\$ 52,800\) Code Sec. 1245 gain

c. \$10,560 Code Sec. 291 gain and

\(\$ 42,240\) Code Sec. 1231 gain

d. \(\$ 52,800\) long-term capital gain

e. None of the above