Sandy acquired business machinery (7-year MACRS property; half-year convention) on July 15, 2020, for \($10,000.\) For 2020, Sandy claimed a \($1,429\) regular MACRS depreciation deduction and did not claim Sec. 179 depreciation or bonus depreciation. Because of her low tax rate in 2021–2023, Sandy did not claim any depreciation deduction on her tax returns in those years. She sells the machine on July 1, 2023, for \($6,000\).

a. What is the adjusted basis of the machine on the sale date?

b. How much gain or loss is recognized on the sale of the machine?