Company A traded an old equipment (historical cost $600,000, accumulated depreciation $475,000, fair value $300,000 ). The old equipment is exchanged for new equipment with a fair value of $240,000. Company A also received $60,000 cash in the transaction. (The exchange lacks commercial substance) Requirement 1. Is there any gain or loss recognized by Company A in this exchange transaction? Why? (clearly explain the reason) Requirement 2. If your answer is yes to Req. \#1, calculate gain or loss recognized by Company A in this exchange Requirement 3. Calculate the cost basis for new equipment. Requirement 4. Prepare Company A's journal entry to record the exchange