LO 8.5 14. An office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $7,500 (original basis of $12,500 less accumulated depreciation of $5,000). The machine was not insured. Calculate the amount and nature of Josie’s gain or loss as a result of this casualty.

Amount of gain or loss $ ____________ Nature ____________