Asset Traded for Similar Asset

A printing press priced at a fair market value of $275,000 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 $90,000, what is the amount of cash given? $fill in the blank 1

b. Assuming that the book value of the press traded in is $108,500, what is the gain or loss on the exchange? $fill in the blank 3