Pact Bank recently traded in office fixtures. Here are the facts:

$($Click the icon to view the facts.$)$

Read the requirements.

Requirement $1.$ Record Pact Bank's trade$-$in of old fixtures for new ones. Assume the exchange had commercial substance.

Let's begin by calculating the gain or loss on the exchange of fixtures. $($Enter $"0"$ for items with a zero value.$)$

Market value of assets received

Less:

Book value of asset exchanged

Cash paid

Gain or $($Loss$)$

Requirements

Record Pact Bank's trade$-$in of old fixtures for new ones. Assume the exchange had commercial substance.

Now let's change one fact. Pact Bank feels compelled to do business with Crescent Furniture, a bank customer, even though the bank can get the fixtures elsewhere at a better price. Pact Bank is aware that the new fixtures' market value is only $$130,000.$ Record the trade$-$in$.$ Assume the exchange had commercial substance.