Splish Company exchanged machinery with an appraised value of $3,495,500, a recorded cost of $5,369,000 and accumulated depreciation of $2,684,500 with Novak Corporation for machinery Novak owns. The machinery has an appraised value of $3,321,000, a recorded cost of $6,380,000, and accumulated depreciation of $3.509,000. Novak also gave Splish $174,500 in the exchange. Assume depreciation has already been updated.