Equipment Was Acquired for $258,000 and Has Accumulated Depreciation of $188,000

Equipment was acquired for $258,000 and has accumulated depreciation of $188,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $206,000 and the business pays $150,000 cash. Assume the exchange has commercial substance. The exchange results in a ________.

A) loss of $14,000
B) gain of $14,000
C) gain of $136,000
D) loss of $136,000