Pharoah Company traded machinery with a book value of $480,000 and a fair value of $1,070,000. It received in exchange from Waterway Industries a machine with a fair value of $963,000 and cash of $107,000. Waterways machine has a book value of $1,016,500. What amount of gain should Pharoah recognize on the exchange (assuming lack of commercial substance)?

**Please show all work**

The correct answer is $59,000 but not sure how to get it.