Brad sold a rental house that he owned for $248,000. Brad bought the rental house five years ago for $227,000 and has claimed $49,000 of depreciation expense. What is the amount and character of Brad's gain or loss?
a. $21,000 ordinary and $49,000 unrecaptured §1250 gain.
b. $21,000 §1231 gain and $49,000 unrecaptured §1250 gain.
c. $70,000 ordinary gain.
d. $70,000 capital gain.
e. None of the choices are correct.