On December 31, 2018, B Corp. sold a machine to Royal and simultaneously leased it back for one year. Pertinent information at this date follows:

Sales price	$	747,000
Book value		678,000
Present value of lease rentals		77,660
($6,900 for 12 months at 12%)
Estimated remaining useful life		12	years

In B's December 31, 2018, balance sheet, the recognized gain from the sale of this machine should be:

Multiple Choice

$0.

$81,700.

$69,000.

$12,700.