A machine cost $1,224,000, has annual depreciation of $204,000, and has accumulated depreciation of $969,000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $280,500, it is exchanged for a machine with a fair value of $1,277,000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at O $1,277,000 O $204,000 O $1,377,000 $969,000