Help Save & Exit 3 Winchester LLC sold the following business assets during the current year: (1) automobile, $30,000 cost basis, $12,000 depreciation, $20,000 proceeds (2) machinery, $25,000 cost basis, $20,000 depreciation, $10,000 proceeds: (3) furniture, $15,000 cost basis, $10,000 depreciation, $4,000 proceeds: (4) computer equipment, $25,000 cost basis, $6.000 depreciation, $10,000 proceeds; (5) Winchester had unrecaptured $1231 losses of $3,000 in the prior five years. What are the amount and character of Winchester's gains and losses before the $1231 netting process? Assume all assets were held for more than one year. Multiple Choice O $3,000 ordinary loss, $0 $1231 loss. O $7,000 ordinary gain, $10,000 $1231 loss O $7,000 ordinary loss, $4,000 $1231 gain.