In year 0, John purchased a machine to use in his business for $74,000. In year 3, John sold the machine. Between the date of the purchase and the date of the sale, John depreciated the machine by $42,000.

What amount of ordinary income, if any, must John recognize on the sale if the sale proceeds were $80,000?

What amount of Section 1231 long-term capital gain, if any, must John recognize on the sale if the sale proceeds were $80,000?