On December 31, 2015, Coronado Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note with $290000 accrued interest payable to Wildhorse, Inc. Wildhorse agrees to accept from Coronado equipment that has a fair value of $1460000, an original cost of $2500000, and accumulated depreciation of $1130000. Wildhorse also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 6%, with interest payable at the end of each year.

Coronado should recognize a gain or loss on the transfer of the equipment of