Antonio borrowed $65,000 to fully fund the purchase of a machine. After paying down the loan to $40,000, he had enough equity to borrow another $25,000 using the machine as collateral. Eight years later, after taking $30,000 of depreciation on the machine, the machine has an adjusted basis of $35,000 and two outstanding note balances of $20,000 and $16,000. Antonio sells the machine subject to the two liabilities (the buyer takes over the liabilities) for cash of $40,000. What is his realized gain or loss on the sale?