B. On December 31, 2017, Free company exchanges machines A and B for a new machine C. Free company also receives $5,000 in cash. The transaction is deemed to lack commercial substance. Information on the machines is as follows: Machine A was acquired on January 1, 2014, at a cost of $60,000. The machine has an estimated 10-year useful life and scrap value of $10,000. This machine is depreciated using straight-line depreciation. Machine B was acquired on January 1, 2016, at a cost of $70,000. The machine has an estimated five-year useful life and scrap value of $5,000. This machine is being depreciated using the double-declining method. Machine C has a fair value of $63,400 at December 31, 2017. Based on the following facts, what gain or loss should be recognized using US GAAP and IFRS? (Be sure to label and show your work.) You can assume that cash is used to make the deal