John borrowed $4,500 to purchase a machine. He later borrowed $2,000 using the machine as collateral. Both notes are nonrecourse. Ten years later, the machine has an adjusted basis of zero and two outstanding not balances of $2,500 and $800. John sells the machine subject to the two liabilities for $1,000. What is his realized gain or loss? a. None of the above. b. $4,300 c. $0. d. $3,300. e. $1,000.