An office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $17,300 (original basis of $25,950 less accumulated depreciation of $8,650). The machine was not insured.

Calculate the amount and nature of Josie's gain or loss as a result of this casualty. (Assume this is the taxpayer's only casualty gain or loss.)

Amount of gain or loss: