A machine cost $1200000, has annual depreciation of $200000, and has accumulated depreciation of $950000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $275000, it is exchanged for a machine with a fair value of $1350000 and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is

a.$0

b.$75000

c.$50000

d.$150000