In 2020, RayeAnn acquires a car for $14,000. She uses the car in her advertising business and for personal purposes. Her records indicate the car is used 70 percent for business and that her total annual operating expenses, including depreciation, are $3,800.

a. How should RayeAnn treat the operating costs of the car for tax purposes?

b. In 2023, RayeAnn sells the car for $6,500. Her business use for 2021 through 2023 remains at 70 percent, and she properly deducted $5,880 in depreciation. What is her taxable gain or loss from the sale of the car?