Question: Please help me understand the question Butte sold a machine to a machine dealer for $50,900. Butte bought the machine for $54,100 several years ago

Please help me understand the question

Butte sold a machine to a machine dealer for $50,900. Butte bought the machine for $54,100 several years ago and has claimed $12,050 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

Multiple Choice

$8,850 1231 loss.
$3,200 1231 loss.
$8,850 ordinary gain.
$8,850 capital gain.
None of the choices are correct.

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