I don't understand why the bottom half is wrong

Hauswirth Corporation sold $($or exchanged$)$ a warehouse in year $0.$ Hauswirth bought the warehouse several years ago for $$84,500,$ and it has claimed $$39,400$ of depreciation expense against the building.

Assuming that Hauswirth receives $$30,000$ in cash in year $0$ and a $$64,500$ note receivable that is payable in year $1,$ compute

the amount and character of Hauswirth's gain or loss in year $0$ and in year $1.$

Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final

answers to the nearest whole dollar amount.

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