Waterway Industries traded machinery with a book value of $$954450$ and a fair value of

$$909000.$ It received in exchange from Carla Vista Co$.$ a machine with a fair value of $$1027170.$

Waterway also paid cash of $$118170$ in the exchange. Carla Vista$$s machine has a book value of

$$954450.$ What amount of gain or loss should Waterway recognize on the exchange $($assuming

lack of commercial substance$)?$