Current Attempt in Progress Novak Co$.$ had a sheet metal cutter that cost $\backslash (\backslash$$ $113,000\backslash )$ on January $5,2021.$ This old cutter had an estimated life of ten years and a salvage value of $\backslash (\backslash$$ $16,000\backslash ).$ On April $3,2026,$ the old cutter is exchanged for a new cutter with a fair value of $\backslash (\backslash$$ $60,000\backslash ).$ The exchange lacked commercial substance. Novak also received $\backslash (\backslash$$ $15,000\backslash )$ cash. Assume that the last fiscal period ended on December $31,2025,$ and that straight$-$line depreciation is used. $($a$)$ Calculate the gain or loss to be recognized by Novak Co$.$ recognized $\backslash$$ List of Accounts Attempts: $0$ of $1$ used $($b$)$ Prepare all entries that are necessary on April $3,2026.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$ Account Titles and Explanation $($To record depreciation.$)($To record exchange of machineries.$)$