Spencer traded its old machine for a newer model on January 1, 2020. The old machine was purchased on January 1, 2016 at a cost of $ 30,000 and had accumulated depreciation of $ 22,000. The estimated fair value of the old machine was $ 4,000. The new machine was listed at $ 50,000 but Spencer received a trade-in allowance for the old machine of $ 8,000, so they had to pay $ 42,000 in the exchange. Calculate the cost of the new machine and the gain or loss reported on Spencer's books related to the exchange. Assume the exchange had commercial substance.

A: New machine cost = $46,000, loss of $4,000

B: new machine cost = $42,000, loss of 4,000

C: New machine cost = 50,000, gain of 4,000

D: new machine cost = 50,000, no gain or loss