Calaveras Tire exchanged machinery for two pickup trucks. The book value and fair value of the machinery were $21,000 (original cost of $66,500 less accumulated depreciation of $45,500) and $17,500, respectively. To equalize fair values, Calaveras paid $8,500 in cash.

At what amount will Calaveras value the pickup trucks?

Assume the exchange has commercial substance. How much gain or loss will the company recognize on the exchange?