A machine cost $140,000, has annual depreciation expense of $28,000, and
has accumulated depreciation of $70,000 on December 31, 2012. On April
1, 2013, when the machine has a fair value of $56,000, it is exchanged
for a similar machine with a fair value of $168,000 and the proper
amount of cash is paid. The exchange lacked commercial substance.
Prepare all entries that are necessary on April 1, 2013.