Jasper Corporation purchased a 40% interest in Mack Corporations common stock on January 1, 2016 for $300,000. This investment is accounted for using the complete equity method and the correct balance in the Investment in Mack account on Jaspers books on December 31, 2018 is $440,000. The original excess acquisition transaction included $60,000 for a Patent, amortized at a rate of $6,000 per year. In 2019, Mack Corporation had net income of $4,000 per month, earned uniformly throughout the year and paid $20,000 of Dividends on May 1st.

Required: If Jasper Corporation sells one-half of its Investment in Mack on August 1, 2019 for $500,000, calculate the gain or loss that will be recognized on this transaction on that day.