**For tax year 2018** During the current year, an office desk used by Pat in his business was completely destroyed by a fire. The adjusted basis of the desk was $900 (original cost of $1,500 less accumulated depreciation of $600). Pat received $500 from his insurance company, but he did not replace the desk.

a.	What is the amount of Pat's recognized gain or loss (deduction) as a result of the casualty?
b.	Assuming this is Pat's only casualty gain or loss for the year, what is the nature of the gain or loss?