Polar Sky Railway (PSR), a transportation company, has substantial investments in property, plant and equipment. In 2017, the company exchanged some of these assets with other companies. [Note: any depreciation expense prior to the following transaction has already been properly recorded.] PSR traded railway tracks running Vancouver-Calgary-Winnipeg to its competitor, High Land Railway, in exchange for the Vancouver-Edmonton-Winnipeg route. PSR received $15 million from High Land because the southern route was shorter. Aside from this $15 million differential, there are no other significant differences in the amount, risk, and timing of future benefits from these two sets of tracks. The tracks, originally laid down in the late 19th century, had a cost of $125 million, accumulated depreciation of $90 million, and a fair value of $100 million. The Vancouver-Edmonton-Winnipeg tracks were recorded on High Land's books at a cost of $105 million and accumulated depreciation of $70 million.

Required:

Record the journal entry for the above transaction on PSR's books. State your reason(s) for the chosen accounting method.