A purchased machine cost $290,000 with delivery and installation charges amounting to $26,000. The declared salvage value was $35,000. Early in Year 3, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $165,000. Determine the loss, gain, or recapture of MACRS depreciation on the sale. The ADR is 12 years for this machine.