In October 2005 Ewing Company exchanged an old packaging machine, which cost $120,000 and was 50% depreciated, for a dissimilar used machine and paid a cash difference of $16,000. The market value of the old packaging machine was determined to be $70,000. The two machines are expected to have significantly different cash flows. For the year ended December 31, 2005, what amount of gain or loss should Ewing recognize on this exchange?