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\frac{3}{120}-\frac{2}{120}
Least common multiple of 40 and 60 is 120. Convert \frac{1}{40} and \frac{1}{60} to fractions with denominator 120.
\frac{3-2}{120}
Since \frac{3}{120} and \frac{2}{120} have the same denominator, subtract them by subtracting their numerators.
\frac{1}{120}
Subtract 2 from 3 to get 1.