Sunny Corporation trades in used machinery with a carrying value of $60,000 ($110,000 less accumulated depreciation $50,000) and a fair value of $100,000. It received in exchange for a machine with a fair value of $90,000 plus cash of $10,000

1. What is the potential profit/loss on sale?

2. What is the cost of the new truck?

3. What is the journal entry?

4. What if Sunny sold the machinery later in the day? What would be the gain on the sale?