On June 1, 2004, XYZ Company paid $360,000 to purchase land, building, and equipment. The market value of these assets on that date were: land $90,000; building $260,000; equipment $50,000. Before the facilities could be used, XYZ Company had to spend $4,000 to put the equipment in working order and $15,000 to renovate the building. The equipment was then estimated to have a useful life of 10 years with a $7,000 salvage value. The equipment will be depreciated using the straight-line method. On December 31, 2010, XYZ Company sold the equipment for $26,000 cash. Calculate the gain recorded on the sale.