On December 31,2024, Novak Co. is in financial difficulty and cannot pay a note due that day. It is a $2900000 note payable to Sunland, Inc. Sunland agrees to accept from Novak equipment that has a fair value of $1430000, an original cost of $2500000, and accumulated depreciation of $1140000. Novak should recognize a gain or loss on the transfer of the equipment of $1070000 loss. $70000 gain. $290000 gain. $0