An office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted

Question:

An office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $8,000 (original basis of $14,000 less accumulated depreciation of $6,000). The machine was not insured. Calculate the amount and nature of Josie's gain or loss as a result of this casualty.
Amount of gain or loss $__________
Nature $__________