A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of $150,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $120,000, it is exchanged, along with a 240,000 payment, for a similar machine with a fair value of $360,000. The exchange lacked commercial substance. Write the entry to record depreciation expense and update the accumulated depreciation for the machine given up. Calculate the gain or loss on the exchange of equipment Write the entry to record the exchange