A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $89,470, it is exchanged for a similar machine with a fair value of $280,700 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2015.