A Machine That Was Purchased for $110,000 Has Accumulated Depreciation

A machine that was purchased for $110,000 has accumulated depreciation of $70,000.The business exchanges the machine for a new one.The new machine has a market value of $140,000,and the business pays $110,000 cash.Assume the exchange has commercial substance.This exchange results in a ________.

A) gain of $10,000
B) gain of $5000
C) loss of $10,000
D) loss of $40,000