Question: A machine cost $1206000, has annual depreciation of $197000, and has accumulated depreciation of $948000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $271000, it is exchanged for a machine with a fair value of $1351000 and the proper amount of cash is paid. The exchange had commercial substance.
The gain to be recorded on the exchange is
A $145000
B $0
C $62250
D $61000