Horse Race Corp exchanges its old machine for a new one. Horse Race Corp pays $6,000 on top of the exchange. The old machine has a historical cost of $15,000 and accumulated depreciation of $8,000. The Heli Brown Book (the authority on these machines) states that the old machine has a fair market value of $10,000 while the new machine has a fair market value of $20,000. In addition, the book states that approximately 2000 of the old machines are traded every year, while 3000 of the new machines are traded every year. How much gain or loss on disposal should Horse Race Corp recognize?

A Loss of $3000

B Loss of $5000

C Gain of $7000

D Gain of $5000