On December 31, 2015, Cumulus Corporation sold an old machine to Stratus Inc. Cumulus accepted a $60,000 note payable and cash down payment of $10,000. The note payable is due December 31, 2019 with interest paid annually, beginning December 31, 2016, at a stated rate of 4%. The old machine had an original cost of $105,000 and a book value of $62,350. The market rate on similar notes is 5%.

What is the gain or loss that Cumulus Corporation will record on December 31, 2015 on the sale of the equipment? (Round all calculations to the nearest dollar. Enter a gain as a positive number. Enter a loss as a negative number).

What is the carrying value of the notes receivable for Cumulus Corporation on December 31, 2016 after recording the interest payment (rounded to the nearest dollar)?