Davis Company exchanged an old machine with a cost of $90,000, total accumulated depreciation of $50,000, and a fair market value of $42,000 for a similar new machine. In addition to the trade in of the old machine Davis Company also paid $15,000 cash. What amount of gain/loss should the company record for the old asset that was exchanged? $7,000 loss $2,000 loss $7,000 gain $2,000 gain None of the above.