Brainer Company traded an old machine for a more up-to-date similar one. The cost of the old machine is $400,000 and was depreciated for a total of $115.000. On the date of exchange the old machines fair value was $270,000. Brainer received in exchange from Dobler Company a machine with a fair value of $300,000. Brainer also paid cash of $30,000 in the exchange. Doblers machine has a book value of 285,000. What amount of gain or loss should Brainer recognize on the exchange?

a.

$15,000 loss

b.

$1,500 loss

c.

$ -0-

d.

$30,000 gain