In February 2022, Grant purchased and placed into service a $30,000 piece of equipment for exclusive use in his business. He elected not to claim the special depreciation allowance that year. He sold the equipment in November 2023 for $10,000. During the year and a half he owned the asset, he claimed depreciation totaling $7,961. Does Grant have a gain or loss, and where on Form 4797 should the sale be reported? Loss, reported in Part I. Loss, reported in Part II. Gain, reported in Part II. Gain, reported in Part III.