On December 31 a machine that was purchased for $100,000 has an accumulated depreciation of 570,000 as of the current date. The company exchanges the machine for a new machine. The new machine has a market value of $120,000 and company pays cash of $100,000. Calculate the loss or gain of the exchange? 1. loss - 50.000 2. Gain - 10,000 3. Gain - 50.000 4. Loss - 10,000