On December 31, 2015, Cumulus Corporation sold an old machine to Stratus Inc. Cumulus accepted a $55,000 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 5%. The old machine had an original cost of $105,000 and a book value of $58,570. The market rate on similar notes is 6%.

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. Please show work if possible.

$6,430 gain.

$3,570 loss.

$4,524 gain.

$5,476 loss.

$16,664 gain.

$6,664 gain.

$4,500 gain.

None of the above.