A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount $120 each year has been recorded for both years. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, with the balance paid in cash. The journal entry to record this exchange would be journalized with:

a) A gain of $40.

b) A loss of $40.

c) A loss of $200.

d) No gain or loss.