In December 2000, RJ Exchanged an Old Bottling Machine, Which

In December 2000, RJ exchanged an old bottling machine, which cost $60,000 and was two-thirds depreciated, for a similar used machine having a current fair value of $24,000, and received a cash difference of $1,000. What is the amount of gain that RJ should recognize on this exchange in the year ended December 31, 2000?

A) $5,000
B) $8,000
C) $0
D) $3,000