Taylor Co. had a machine that cost $280,000 on January 1, 2017. This old machine had an estimated life of ten years and salvage value of $45,000. On April 1, 2022, the old machine is exchanged for a new machine with an appraised value of $150,000. The exchange lacked commercial substance. Taylor also received $25,000 cash. Assume that the last fiscal period ended on December 31, 2021, and that straight-line depreciation is used. Instructions (a) Show the calculation of the amount of the gain or loss to be recognized by Taylor. (b) Prepare all entries that are necessary on April 1, 2022. Show a check of the amount recorded for the new machine