A machine cost $220,000, has annual depreciation expense of $44,000, and has accumulated depreciation of $110,000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $89,000, it is exchanged for a similar machine with a fair value of $280,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021