Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $280,000 and accumulated depreciation of $140,000. The new sailboat had an invoice price of $297,000. Hunter received a trade in allowance of $141,000 on the old sailboat, which meant the company paid $156,000 in addition to the old sailboat to acquire the new sailboat. If this transaction lacks commercial substance, what amount of gain or loss should be recorded on this exchange?

$0 gain or loss.

$1,000 gain.

$1,000 loss.

$140,000 loss.

$141,000 gain.