A machine cost $1176000, has annual depreciation of $196000, and has accumulated depreciation of $931000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $269500, it is exchanged for a machine with a fair value of $1323000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at $1200500. $1323000. $1053500. $1298500.