Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance.

Old Equipment Cash

Book Value Fair Value Paid

$ $40,000$ $ $35,300$ $ $8,100$

The company would record a gain$($loss$)$ on exchange of assets in the amount of:

Multiple Choice

$$(4,700).$

$$4,700.$

$$5,900.$

$$(5,900).$