Busytown Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Busytown Corporation gave the machine plus $3000 to Tracy Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

		Busytown Corp. (Old Machine)			Tracy Co. (New Machine)
Machine cost		$4500			$3000
Accumulated depreciation		2250			?0?
Fair value		4500			7500

What is the value of the newly acquired asset?

What would the company report gain (loss) on this asset exchange?