Arion, Corp. agreed to exchange production equipment for packaging equipment on December 28, 2022 in order to save cash for an upcoming obligation. The book value of the production equipment at the time of the exchange was $1,019,000 and its market value was $999,000. The fair value of the packaging equipment on the day of the exchange was $1,029,000. If the exchange was deemed to have commercial substance, what should Arion, Corp. record as the gain or loss on the new machine? (A 25)

Group of answer choices

$10,000 loss

No gain or loss should be recorded on this exchange.

$20,000 loss

$20,000 gain