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, it was exchanged along with a cash payment of $240,000 for a similar machine with a fair value of $360,000. The exchange has commercial substance. Prepare all entries that are necessary at April 1, 2018.