A machine cost $$600,000,$ has annual depreciation of $$100,000,$ and has accumulated depreciation of $$450,000$ on December $31,2014.$ On April $1,2015,$ when the machine has a fair value of $$137,500,$ it is exchanged for a machine with a fair value of $$675,000$ and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is

$$0.$

$$12,500$

$$25,000$

$$75,000$