please also count the cost of the new machine to be recorded

A machine cost 120,000, has annual depreciation of 20,000, and has accumulated depreciation of 90,000 on December 31, 2022. On April 1, 2022, when the machine has a fair value of 27,500, it is exchanged for a machine with a fair value of 135,000 and the proper amount of cash is paid. The exchange has commercial substance. The gain to be recorded on the exchange is O a. 5,000 O b. 2,500. O c. 15,000 O d. 0