Melvin Motor Sales exchanged a car from its inventory for a computer to be used as a noncurrent operating asset. The following information relates to this exchange that took place on July 31, 2011:
Carrying amount of the car $30,000
Listed selling price of the car $45,000
Fair Value of the Computer $43,000
Cash difference paid b Melvin Motor $5,000
The exchange has commercial substance.
On July 31, 2011, how much profit should Melvin recognize on this exchange?