Jim, a long-time client of yours, recently sold a few assets from his business. He brings the following information to you hoping you can help him make heads or tails of it:

He sold an old pickup truck for $9,888 cash.

He originally purchased the truck 10 years ago for $30,900. Since then, he has performed normal maintenance on it.

At one point, he had to replace the truck's transmission for an additional $3,589. (Because you knew about this, you have properly recorded depreciation on the truck for a total of $32,000 before the sale.)

How would this be taxed under 2017 IRS tax law if a gain? if not a gain what is the loss?