Spicer Corporation has a normal gross profit on installment sales of 30%. A 2011 sale resulted in a default early in 2013. At the date of default, the balance of the installment receivable was $40,000, and the repossessed merchandise had a fair value of $22,500.

if we assume the repossessed merchandise is to be recorded at fair value, the gain or loss on repossession , what it should be?