Sandy acquired business machinery (which qualified as 7•year MACRS property) on July 15, 2016, for $10,000. In 2016, Sandy claimed a $1,429 regular MACRS depreciation deduction and she elected not to claim Sec. 179 depreciation or bonus depreciation. Because of her low tax rate in 2017-2019, Sandy did not claim any depreciation deduction on her tax returns in those years. She sells the machine on July 1, 2019, for $6,000.

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

b. How much gain or loss is recognized on the sale of the machine?