Renata Corporation purchased equipment in $2021$ for $$271,400$ and has taken $$122,130$ of regular MACRS depreciation. Renata Corporation sells the equipment in $2023$ for $$162,840.$

What is the amount and character of Renata's gain or loss?

Renata Corporation has a gain of $fill in the blank $1$

of which $fill in the blank $2$

is treated as ordinary income due to