Please solve this tasks with detailed explanation

Calculate cash flows from investing activities Example 2 Trade-in A vehicle priced at a fair market value of $100000 is acquired on 31 December 2020 in a transaction that has commercial substance by trading in a similar vehicle and paying cash for the difference between the trade-in allowance and the price of the new vehicle. Trade in allowance is $20000. The initial cost of the old car is $60000, which was purchased on 1 Jun 2017. The useful life of the car is 6 years. What is the gain or loss on exchange