Nick had a general purpose truck (Old Truck) that he used in his sole proprietorship. Nick originally acquired the Old Truck in 2018 by paying $23,790 in cash, performing consulting services for the seller worth $5,600, and financing the remainder of the purchase price with a $7,100 loan. During 2021, Nick traded in the Old Truck to a car dealership while purchasing a used general purpose truck (Used Truck). Nick and the car dealership are unrelated to each other. As part of the exchange, the dealership gave Nick a trade-in allowance of $8,300 for the Old Truck (i.e., credited $8,300 against the total purchase price for the Used Truck) and assumed the remaining $2,700 outstanding balance of his liability (i.e., the unpaid balance of the $7,100 loan that Nick took out when he acquired the Old Truck in 2018). Nick properly took $28,083 of depreciation on the Old Truck. Finally, Nick had to pay the government a $45 fee to transfer the Old Trucks title to the car dealership. The car dealership, which operates as a sole proprietorship, had acquired the Used Truck at an auction during 2020. The dealership paid $6,300 for the Used Truck, $240 as a fee to the auctioneer, and $2,200 to enhance the Used Truck during the process of getting it ready for sale. The car dealership uses a specific identification method for its used vehicles and paid its salesperson a $760 commission for the sale of the Used Truck to Nick.

Required: Explain what amount, if any, Nick and the car dealership must include in their respective gross incomes for 2021 from these transactions.