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On January $1,2023,$ Smeder Company, an $80\%$ owned subsidiary of Collins, Incorporated, transferred equipment with a $10-$year life $($six of which remain with no salvage value$)$ to Collins in exchange for $$84,000$ cash. At the date of transfer, Smeder$$s records carried the equipment at a cost of $$120,000$ less accumulated depreciation of $$48,000.$ Straight$-$line depreciation is used. Smeder reported net income of $$28,000$ and $$32,000$ for $2023$ and $2024,$ respectively. All net income effects of the intra$-$entity transfer are attributed to the seller for consolidation purposes.

Assuming there are no excess amortizations associated with the consolidation, and no other intra$-$entity asset transfers, what amount of this gain should be recognized for consolidation purposes for $2023?$

Multiple Choice

$$12,000$

$$9,600$

$$8,400$

$$2,000$

$$1,200$