Smith Co. sells a machine during the year for

$100,000. Smith acquired the machine for

$140,000. At the time ofs ale, 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