The printing press process of fair market value of $275,000 is acquired in the transaction that has a commercial substance by trading in a similar price and paying cash for the difference between the trade-in allowance in the price of the new press.

a. assuming at the trade-in allowance is $90,000, what is the amount of cash given?

b. assuming the book value of the press trade it in is $68,000, what is the gain or loss in exchange?