The Brock Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery orginally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Brock Company should record:
a. the new machinery at $16,700
b. the new machinery at $12,700
c. a gain of $1,500
d. a loss of $1,500