Gerber Company exchanged machinery that it uses in its manufacturing operations for similar equipment that is used in the operations of Rhome Company. Gerber also gave Rhome $450,000 in the exchange. The following information pertains to the exchange:

I included the solution in the second image. I was wondering how they calculated the 90,000 for the Gain on Exchange of Assets. Please show any calculations or logic behind getting that number. Thanks.

Equipment (cost) Accumulated Amortization FV of equipment Cash received (paid) Gerber Company $780,000 620,000 250,000 (450,000) Rhome Company $860,000 240,000 600,000 450,000 PARTI REQUIRED: Prepare the journal entry on Gerber' books assuming that the exchange is determined NOT to have commercial substance. For each component of the journal entries, clearly state whether the entry (dr./cr.) is made to the income statement (1/S), balance sheet (B/S) or statement of other comprehensive income (OCI). For example, Dr. Cash (B/S) $10; Cr. Revenue (1/8) $10. (1)No commercial substance Gerber Dr. Machinery (new) Cr. Accu. Amortization (old machine) 600,000 (1 for the number, 0.5 for acct.) 620,000 (1 mark) Cr. Machine (old) Cr. Cash Cr. Gain on Exchange of Assets 780,000 450,000 (1 mark) (1 mark) 90,000 (1 for number, 0.5 for acct.)