In 2019, Anne sold a drill press that he had used in his woodshop business for three years. Anne had purchased the press for $10,000 and had deducted depreciation of $7,120 using the MACRS method. Straight-line depreciation would have been $5,000.

Consider the appropriate treatment if the drill press is sold for $12,000 and $1,000.

what amount of the gain or loss is recaptured as ordinary income?