Sandhill Co. traded machinery with a book value of $675,000 and a fair value of $975,000. It received in exchange from Bonita Industries a machine with a fair value of $877,500 and cash of $97,500. Bonita's machine has a book value of $926,250. What amount of gain or loss should Sandhill recognize on the exchange (assuming lack of commercial substance)? $40,000 loss $30,000 loss $40,000 gain $30,000 gain