On 10/1/2013 Baker Co. purchased equipment costing $90,000 plus sales tax of $5,000, testing costs of $1,000, and obtained a license to operate for $500. The company estimated the equipment has a useful life of 10 years and has a salvage value of $20,000. It uses the straight line method of depreciation. The equipment was sold for $73,000 on 12/31/2015.

What is the gain or loss on the sale of the asset? (You must show all your work.)