Pet Instructional Programs Corp. (PIP) and its 86% owned subsidiary, Squeak Toys Ltd (Squeak), join in filing consolidated returns for U.S. tax purposes. On February 8, 2018, Squeak purchased new fixtures for $8,400, which Squeak immediately placed into service in its business without claiming bonus depreciation. On January 1, 2020, when the fixtures had an adjusted basis of $5,142, Squeak sold the fixtures to PIP for $7,600. Although PIP immediately placed the fixtures into service in 2020, PIP ended up selling the fixtures to an unrelated purchaser on April 7, 2021. Under the terms of the sale, the unrelated purchaser agreed to pay PIP 10% of whatever profit the purchaser reported in the month of October for six consecutive years, starting with October 2021. Accordingly, the unrelated purchaser made its first payment to PIP of $1,300 on November 15, 2021. Required: Explain what depreciation, gain, and/or loss PIP and Squeak would include in their respective separate taxable incomes (i.e., taxable income after any adjustments for intercompany transactions) for 2020 and 2021 with respect to the fixtures.