A printing press priced at a fair market value of $471,700 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.

a. Assuming that the trade-in allowance is $207,500, what is the amount of cash given? $_______________

b. Assuming that the book value of the press traded in is $186,800, what is the gain or loss on the exchange? _______________ $______________-