Butte Sold a Machine to a Machine Dealer for $50,600

Butte sold a machine to a machine dealer for $50,600. Butte bought the machine for $54,400 several years ago and has claimed $12,200 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

A) $8,400 §1231 loss.
B) $3,800 §1231 loss.
C) $8,400 ordinary gain.
D) $8,400 capital gain.
E) None of the choices are correct.