Sheridan Company traded machinery with a book value of $$968760$ and a fair value of $$897000.$ It received in exchange from Carla Vista Co$.$ a machine with a fair value of $$1040520.$ Sheridan also paid cash of $$104052$ in the exchange. Carla Vista's machine has a book value of $$968760.$ What amount of gain or loss should Sheridan recognize on the exchange $($assuming lack of commercial substance$)?$

$$71760$ loss

$$-0-$

$$104052$ gain

$$7176$ loss