Eight years ago Chun borrowed $45,000 to purchase a machine that cost $45,000. Six years ago he borrowed $15,000 using the machine as collateral. Both notes are nonrecourse. Chun sold the machine this year when the machine had an adjusted basis of zero and the two outstanding related note balances were $30,000 and $6,000. The buyer gave Chun $21,000 cash and assumed the two liabilities in exchange for the machine.

Calculate the amount of Chuns realized gain or loss.

• A.

  $21,000.

• B.

  $51,000.

• C.

  $57,000.

• D.

  $0.