On January 1, 2024, Jacob Incorporated purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a service life of eight years and an estimated residual value of $8,000. On December 31, 2025, the truck was exchanged for a new truck valued at $60,000. Jacob received a trade allowance of $35,000 on the exchange with the remaining $25,000 paid in cash. What amount of gain or loss should Jacob Incorporated record on December 31, 2025?

Multiple Choice

Gain, $5,000

Loss, $3,000

Loss, $38,000

Loss, $18,000