$01$:$06$:$20$

In Year $3$ Daniels, an individual, sold Section $1245$ property for $$21,000$ that had an adjusted basis of $$12,000,$ resulting in a $$9,000$ gain. The property had cost Daniels $$20,000$ when purchased in Year $1,$ and $$8,000$ of MACRS depreciation had been taken. Daniels did not sell any other property during the year. How should Daniels report the gain on Daniels' Year $3$ tax return?

Multiple Choice

As a long$-$term capital gain of $$9,000$

As an ordinary gain of $$1,800$ and a long$-$term capital gain of $$7,200$

As an ordinary gain of $$8,000$ and a long$-$term capital gain of $$1,000$