A machine cost $360,000, has annual depreciation of $60,000, and has accumulated depreciation of $270,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $82,500, it is exchanged for a machine with a fair value of $405,000 and the proper amount of cash is paid. The exchange lacked commercial substance. The gain to be recorded on the exchange is:
A) $0.
B) $45,000 gain.
C) $7,500 loss.
D) $15,000 gain.