A machine cost $244,400, has annual depreciation expense of $48,880, and has accumulated depreciation of $122,200 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $99,980, it is exchanged for a similar machine with a fair value of $290,300 and the proper amount of cash is paid. The exchange lacked commercial substance.

Prepare all entries that are necessary at April 1, 2015.