Stephanie sold business-use machinery for $47,000 on December 31, 2020. The machinery had been purchased on January 2, 2017, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2020, what should Stephanie report? A.) A $1231 gain of $6,000 and $3,000 of ordinary income.
B.) A $1231 gain of $6,000 (capital gain).
C.) A $1231 gain of $3,000 and $3,000 of ordinary income.
D.) Ordinary income of $6,000.