A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2018. On Jan 1, 2019, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,000 and $112,000 is paid. The exchange lacked commercial substance. Prepare the entry necessary on January 1, 2019 to record the exchange.