Please provide problem with accounting question

James sold equipment he purchased eight months earlier for use in his consulting business. His cost and adjusted basis in the equipment is $42,000. He incurred selling expenses of $3,000. The buyer paid $35,000 cash and assumed James's $18,000 loan on the equipment. What is the amount of his gain or loss, and where on Form 4797 will he report the sale? a) $8,000 gain on PartI b) $8,000 gain on Part c) $8,000 loss on Part I d) $8,000 loss on Part