A B C D 1 We trade an older piece of equipment for new equipment. E F G H 2 The old equipment had an initial cost of $75,000 and accumulated depreciation of $60,000. 3 The old equipment has a fair value of $20,000. 4 We are also paying cash of $80,000 to get the new equipment. 5 Make the necessary journal entry to record this exchange, assume gains are allowed if applicable. 6 7 8 9 10