Problem 3 The New York Strip Steak House is undergoing renovation. A consulting firm has recommended that the NYS Steak House replace its old ovens and grills with new ones that will make the kitchen more efficient. The old equipment was purchased ten years ago for $35,000. The annual depreciation was $2,500. The consulting firm has found a buyer who is interested in the ovens and grills and who will pay $13,000 cash for them. The new equipment will cost $75,000. Required: Using the information provided, determine the amount of gain or loss on the sale that will be incurred if the NYS Steak House takes the consulting firm's advice and replaces the ovens and grills.