Arnie, a college student, purchased a truck in 2016 for $6,000. He used the truck 70% of the t ime as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five-year recovery period, and he claimed depreciation deductions of $840 in 2016 and $1,344 in 2017. Arnie sells the truck on June 20, 2018, for $3,000.

a. What is the amount of allowable depreciation in 2018?

b. Determine Arnie's realized and recognized gain or loss and its character.