Ryle Company traded machinery with a carrying value of $550,000 and a fair value of $480,000 in exchange for a similar machine from Missouri Corp. Ryle also paid cash of $20,000 in the exchange. Missouri Corp.s machine has a carrying value of $525,000. What amount of gain or loss should Ryle recognize on the exchange, assuming lack of commercial substance?

a. $0 loss b. $70,000 gain c. $2,800 loss d. $70,000 loss