Rogers Co. had a sheet metal cutter that cost $240,000 on January 5, 2013. This old cutter had an estimated life of ten years and a salvage value of $40,000. On April 3, 2018, the old cutter is exchanged for a new cutter with a fair value of $120,000. The exchange lacked commercial substance. Rogers also received $30,000 cash. Assume that the last fiscal period ended on December 31, 2017, and that straight-line depreciation is used. Instructions (a) Prepare all entries that are necessary on April 3, 2018.