After 4 years of life in the slow lane, Doug decided to give up his goat ranch and move back to the big city. He sold the goat milking machine for $1,000. The machine originally cost $1,200 and had $820 of accumulated depreciation at the time of sale.

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a. What is the total gain or loss on the sale of the goat milking machine?

b. Is the gain or loss treated as capital or ordinary? Explain.