In January 2018, Paul purchased and placed into service a 20000 piece of equipment for exclusive use in business. He elected not to claim the special depreciation allowance that year. He sold the equipment in October 2020 for 7000. During the two and a half years he owned the asset he claimed depreciation totaling 9505. What is the amount and type of gain or loss and where on form 4797 does Paul report the sale? a. 3495 gain part 2 b. 3495 gain part 3 c. 3495 loss part 1 d. 3495 loss part 2