ABC Catering Company purchased a computer for $3,400, debiting Computer Eqipment. During 2016 and 2017, ABC Catering recorded total depreciation of $2,800 on the computer. On January 1, 2018, ABC Catering traded in the computer for a new one, paying S3,300 cash. The fair market value of the new computer is $4,500. Journalize ABC Catering's exchange of computers. Assume the exchange had commercial substance Let'sbegin by calculating the gain or loss on the exchange of computer equipment on January 1 Market value of assets received Less: 4,500 Book value of asset exchanged 6,200 3,300 9500 Cash paid Gain or (Loss) 5,000 Journalize ABC Catering's exchange of computers. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jan, Computer Equipment (new) 4,500 Computer Equipment (old) Cash Gain on Disposal Exchanged old computer equipment and cash for new computer equipment