Note: Round any percentages used to 4 decimal places (i.e. 0.#### or ##.##%). All answers should be rounded to the nearest dollar. Do not use dollar signs when entering your answer.

On November 1, Y0, ABC purchased a piece of equipment for $5,100,000. On January 1, Y2, the company traded the asset with XYZ Company for a new fixed asset and received cash of $500,000. ABC and XYZ Company are in a similar industry and use the fixed assets to produce a final good they sell. At the time of the trade, the original fixed asset had a fair market value of $4,100,000 and had been depreciated $1,045,555.

Determine the balance at which the new asset should be recorded if the trade has commercial substance.

Determine the amount of the gain that should be recognized if the trade has commercial substance.

Determine the balance at which the new asset should be recorded if the trade does not have commercial substance.

Determine the amount of the gain that should be recognized if the trade does not have commercial substance.