Arlington LLC Traded Machinery Used in Its Business to a Machinery

Arlington LLC traded machinery used in its business to a machinery dealer for some new machinery. Arlington originally purchased the machinery for $60,000 and it had anadjusted basis of $28,000 at the time of the exchange. The new machinery had a fair market value of $35,000. Arlington also received $2,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?

A) $9,000.
B) $7,000.
C) $2,000.
D) $0.
E) None of the choices are correct.