Fox Co. exchanged equipment and $18,000 cash for similar equipment. The fair value of the old equipment was $90,000 and the book value of the old equipment was $82,000. Assuming that the exchange has commercial substance, Fox Co. would record: 1) A gain of $26,000. 2) A loss of $8,000. 3) A gain of $8,000. 4) A loss of $26,000. 5) Neither a gain or a loss