Mercurial Company traded its cutting equipment for the newer air- cooled equipment manufactured by Broad Street Corporation. The air- cooled equipment will increase Mercurial’s productivity. The old equipment had a book value of $ 140,000 (cost of $ 700,000 less accumulated depreciation of $ 560,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $ 210,000. Mercurial paid Broad Street $ 602,000 in cash. The new air- cooled equipment had a fair value of $ 812,000. Prepare the journal entry to record the exchange on the books of the Mercurial Company.