Sumner sold equipment that it uses in its business for $30,600. Sumner bought the equipment a few years ago for $79,700 and has claimed $39850 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?

Arlington LLC purchased an automobile for $75,000 on July 5, 2019. What is Arlington's depreciation deduction for 2020 if its business-use percentage is 74 percent? (Ignore any possible bonus depreciation.) (Use Exhibit 10-10.)