XYZ CORP HAS THE FOLLOWING DATA REGARDING A NP AND THE COLLATERALIZED MACHINE:

NOTE PAYABLE 185,000

INTEREST PAYABLE 6,000

OLD MACHINE COST 275,000

OLD MACHINE ACCUMULATED DEPRECIATION (180,000)

OLD MACHINE FAIR MARKET VALUE 89,000

THE BANK FORECLOSED IN FULL SATISFACTION OF THE NOTE AND ACCRUED INTEREST.

REQUIRED: WHAT IS XYZ'S GAIN OR (LOSS) ON MACHINE DISPOSAL? (PLEASE INDICATE GAINS AS A POSITIVE NUMBER AND LOSS AS A NEGATIVE NUMBER)

REQUIRED: WHAT IS XYZ'S GAIN ON DEBT RESTRUCTURING?