On June 1, 2019, Duke purchased and placed in service 5-year MACRS tangible equipment costing $100,000. On July 1, 2021, Duke sold the property for $105,000. Required: a. Calculate the amount of depreciation allowed for years 2019, 2020, and 2021, assuming that Duke did not use either a section 179 election or bonus depreciation in 2019. Determine the amount and character of Duke's gain upon the sale of the asset on July 1, 2021.