Renata Corporation purchased equipment in $2021$ for $$263,800$ and has taken $$118,710$ of regular

MACRS depreciation. Renata Corporation sells the equipment in $2023$ for $$158,280.$

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

Renata Corporation has a gain of $

$x,$ of which $

is treated as ordinary

income due to

$$