On January 1, 20X3, ONeil Company buys equipment for $70,000 with a ten-year life and a $10,000 expected residual value. Depreciation is applied using the double-declining balance method. The half-year convention is not being used. On April 1, 20X5, when this equipment is worth $44,000, it is traded for a truck that is worth $74,000. ONeil pays $30,000 in cash to make up the difference. What gain or loss is recognized on this exchange?

$1,440 gain

$2,200 gain

$1,000 loss

$1,000 gain

$2,440 loss