Algeria Inc

Algeria Inc.traded one of its used trailers (cost $20,000, accumulated depreciation $18,000) for another used trailer with a fair value of $3,200.Algeria also paid $300 to complete the transaction.Since the exchange will leave Algeria in the same economic position, this transaction lacks commercial substance.What is the gain or loss on the exchange?

A) $1,200 gain
B) $900 gain
C) $300 loss
D) $0 (no gain or loss)