A machine cost $1368000, has annual depreciation of $228000, and has accumulated depreciation of $1083000 on December 31, 2025. On January 1, 2026, when the machine has a fair value of $313500, it is exchanged for a machine with a fair value of $1539000 and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is O $57000 O $28500 O $0 O $171000 eTextbook and Media

A machine cost $1368000, has annual depreciation of $228000, and has accumulated depreciation of $1083000 on December 31 , 2025. On January 1,2026, when the machine has a fair value of $313500, it is exchanged for a machine with a fair value of $1539000 and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is $57000 $28500 50 $171000