China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $22,500 and $15,000 (original cost of $40,000 less accumulated depreciation of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $7,600 in cash to Midwest Chicken.

1. At what amount did China Inn record the delivery truck? 2. How much gain or loss did China Inn recognize on the exchange?