Benitez Company traded machinery with original cost of $270,000 and accumulated depreciation of $90,000. It received in exchange from Torres Company a machine with a fair value of $270,000 and cash of $30,000. Torres machine has a book value of $285,000. What amount of gain or loss should Benitez recognize on the exchange assuming the transaction has commercial substance?

$12,000 loss

$12,000 gain

$30,000 loss

$120,000 gain