A machine cost $243,600, has annual depreciation expense of $48,720, and has accumulated depreciation of $121,800 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $98,900, it is exchanged for a similar machine with a fair value of $292,200 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2015.