Rogers Co. had a sheet metal cutter that cost $118,000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value of $15,000. On April 3, 2015, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Rogers also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2014, and that straight-line depreciation is used