Lizzy Co. traded an old machine to Chang Co. for a similar new machine. The exchange is assumed to lack commercial substance. Lizzy also received $10,000 in cash. The following information relates to the machines on the date of the exchange:Old machine CV : $70,000 FV: $100,000New machine CV: $45,000 FV: $90,000What amount of gain should Lizzy record from this exchange under U.S. GAAP?
a. $0
b. $3,000
c. $30,000
d. $10,000