Nano Corporation agreed to give Rewind Company a machine in full settlement of a note payable to Rewind. The machine's original cost was $70,000. The note's face amount was $55,000. On the date of the agreement,
The note's carrying amount was $52,500 and its present value at the current market rate was $48,000.
The machine's carrying amount was $54,500, and its fair value was $48,000.
What amounts of gain (loss) should Nano recognize, and how should these be classified in its income statement?

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Extraordinary Other $(2,000) $0 (2,000) (2,000) (6,500) a. b. 2,500 4,500 c. d.