A Machine That Was Purchased for $120,000 Has Accumulated Depreciation

A machine that was purchased for $120,000 has accumulated depreciation of $90,000. The business exchanges the machine for a new one. The new machine has a market value of $130,000, and the business pays $120,000 cash. Assume the exchange has commercial substance. This exchange results in a ________.

A) gain of $20,000
B) gain of $10,000
C) loss of $20,000
D) loss of $30,000