1. At the beginning of the year four years ago, Cedar Valley Company purchased construction equipment for $715,000, with a useful IIfe of six years and estimated salvage value of $100,000. The company uses the straight-Ine method of depreciation. On July 3 , 20X1, this equipment was traded for new similar construction equipment that has a value of $800,000. The company pald $582,000 cash and was given a trade-in allowance of $218,000 for the old equipment. 2. Assume the same facts as stated above, except that Cedar Valley paid cash of $514,750 on the trade-In and was given an allowance of $285,250 for the old equipment. (Note: The presentation In the text related to the exchanges of assets has been superseded by FAS 153. Under FAS 153, galns and losses on the exchange of assets that have commerclal substance are recognized in full. The deferral of gains (by reducing the basis In the new asset) only pertalns to assets that lack commercial substance.) Requlred: 1\&2. Prepare the general journal entry needed on July 3,201, to record the trade-In. (Assume that the entry to bring depreciation up to date has been made.)