ABC purchased a computer that cost $72,000 on March 31, 2028. The computer had an estimated useful life of six years and a salvage value of 0, and was being depreciated using the straight line method. On December 31, 2029, the old computer was exchanged for a similar computer with a fair market value of $65,000. Assume this transaction lacks commercial substance, determine the gain/loss on the trade and cost booked for the new computer assuming each of the following independent scenarios:

a. ABC paid $5,000 on the exchange

b. ABC received $3,000 on the exchange