Martin Phillips, a salesman, sold his automobile for $1,400. He had used the automobile for business 60% of the time. His original purchase price was $5,400, and he had deducted $2,000 in depreciation by the time it was sold. Compute his taxable gain or loss on this transaction.

a) $ 400 loss b)$ 0 c) $2,000 loss d) $1,400 gain