Client sold his business auto.  The basis was zero after section 179 as of the date of the sale.  The sale price was $12,000, original cost of the asset was 25,000.  Dispositions on the asset entry worksheet is showing a loss of $13,025.  No gain or loss are showing on the 4797 or anywhere on the k-1.

Also, shouldn't there be a gain of $12000 since the asset's basis is $0?

The auto was purchased in 2015 and sold last year.