I need the correct answer to this general accounting problem using the standard accounting approach.

Sophie sells equipment she used in her business. The equipment originally cost $40,000 and had an adjusted basis of $28,000 on the date of sale. a. If Sophie sells the equipment for $20,000, what is the amount and character of the recognized gain or loss? b. If Sophie sells the equipment for $32,000, what is the amount and character of the recognized gain or loss