A machine cost $$1032000,$ has annual depreciation of $$172000,$ and has accumulated depreciation of $$817000$ on December $31,$

On April $1,2026,$ when the machine has a fair value of $$236500,$ it is exchanged for a machine with a fair value of $$1161000$ and

the proper amount of cash is paid. The exchange had commercial substance.

The new machine should be recorded at

$$1053500.$

$$924500.$

$$1161000.$

$$1139500.$