Sandy acquired business machinery (which qualified as 7-year MACRS property) on July 15, 2015, for $10,000. In 2015, Sandy claimed a $1,429 regular MACRS depreciation deduction and she elected not to claim Sec. 179 depreciation or bonus depreciation. Because of her lo,v tax rate in 2016-2018, Sandy did not cla im any depreciation deduction on her tax returns in those years. She sells the machine on July 1, 2018, for $6,000.

a. What is the adjusted basis of the machine on the sale date?

b. Ho,v much gain or loss is recognized on the sale of the machine?