ABC Corp purchased a machine on April 30, Year 4, by trading in its old machine and paying the balance in cash. The list price of the new machine was $16,593, cash paid on the exchange was $10,498, original cost of old machine was $11,766, accumulated depreciation of old machine on December 31, Year 3, was $6,626, and the market value of old machine was $5,461 at the time of exchange. The old machine had a five-year useful life when originally purchased three years ago and a $737 residual value. Straight-line depreciation was used. Assume that the fiscal year ends on December 31 and the transaction is considered a monetary transaction with commercial substance. What should be the gain or loss on disposal of the old machine recorded in this exchange?