Amachine cost $1,500,000, has annual depreciation of $200.000, and has accumulated depreciation of $1,187.500 an April 1, 2021. On April 1, 2027, when the machine has a fair value of $343,750, it is exchanged for a machine with a fair value of $1,350,000 and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is 10 $42.250 $23,000 $31.250