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Oscar borrowed $ 1 2 5 , 0 0 0 to purchase a machine costing $ 1 5 0 , 0 0 0 . He

Oscar borrowed $125,000 to purchase a machine costing $150,000. He later borrowed an additional $12,500 using the machine as collateral. Four years later, the machine has an adjusted basis of zero and two outstanding loan balances of $72,000 and $9,000. Oscar sells the machine subject to the two liabilities for $22,500. What is his amount realized?

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