An office machine with a market value of $10,100 used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $8,100 (original basis of $12,150 less accumulated depreciation of $4,050). 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: