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East Mill Pizzeria is closing its business. It sold its two-year-old pizza ovens to Marco's Italian Restaurantfor $550,000. Originally, East Mill acquired the pizza ovens at a cost of $745,000.The ovens hadan estimated useful life of 10 years, an estimated residual value of $45,000, and were depreciated using straight-line depreciation. Complete the requirements below for East MillPizzeria.

3.What is the gain or loss on the sale of the ovens at the end of the second year?