22. Rick borrows $50,000 to purchase a machine. He later borrows $40,000 using the machine as collateral. The first note is recourse, the second note is nonrecourse. Seven years later, the machine has an adjusted basis of $5,000 and the outstanding balances on the two notes are $35,000 and $10,000, respectively. Rick sells the machine for $15,000 cash and the buyer agrees to assume the two outstanding notes on the machine. What is Rick's realized gain or loss? a. $25,000. b. $40,000. c. $50,000. d. $55,000 e. $85,000