The answers are bolded. Please provide detailed explanation on how to get the answers. Thank you.

16. Portas Co. leased equipment to Ingalls Co. Assume that the residual value was guaranteed and Portas gets to recognize all the profits. At the end of the lease term, before the lessee transfers the asset to the lessor, the leased asset and obligation accounts have the following balances:

Leased equipment under capital lease	$1,400,000
Less accumulated depreciation--capital lease	1,344,000
	$ 56,000
Interest payable	$ 5,320
Obligations under capital leases	50,680
	$56,000

If, at the end of the lease, the fair market value of the residual value is $30,800, what gain or loss should be recorded?

$22,680 gain

$30,800 gain

$24,920 loss

$25,200 loss