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Jamie owned a machine with a current loan balance of $40,000. He bought the machine several years ago for $60,000 and has claimed $15,000 of

Jamie owned a machine with a current loan balance of $40,000. He bought the machine several years ago for $60,000 and has claimed $15,000 of depreciation expense. Jamie sold the machine to a third party buyer for $30,000 cash. The buyer also agreed to assume Jamie's oustanding machine loan balance.What is the amount and character of Jamie's gain or loss?

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