In 2019, Dan Dunne sold a business machine for $75,000. He had purchased the machine in 2015for $90,000, had depreciated it on the straight-line basis using a life of five years, and had taken a total of $63,000 depreciation.

a. How should Dan treat the recognized gain or loss on the sale?

b. How should Dan treat the gain or loss if he had used an accelerated depreciation method with a total of $71,100 taken in the four years?