An exchange of similar productive assets was completed between Company A and Company Z$.$ Prior to the exchange, Company A owned Asset A; Company Z owned Asset Z$.$ Companies A and Z swapped Assets A and Z$.$ Company A also paid $$40,000$ cash to Company $Z$ in the exchange. The exchange is with commercial substance.

Asset A

Book Value

Market Value

Asset Z $$50,000$ $$60,000$

In recording the exchange, Company A will report

a gain of $$10,000$

a gain of $$30,000$

a loss of $$10,000$

a loss of $$20,000$

neither a gain nor a loss