A machine cost $242,000, has annual depreciation expense of $48,400, and has accumulated depreciation of $121,000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $96,410, it is exchanged for a similar machine with a fair value of $288,500 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)