Balance sheet
cash	$ 425,621
accounts recievable	$ 1,654,887
note receivable	$ 900,000
building	$ 1,800,000
construction	$ 600,000
equipment	$ 637,000
idle equipment	$ 107,000
broadcast equipment	$ 1,423,000
total assets	$ 7,547,508
accounts payable	$ 1,067,450
line of credit	$ 300,000
note payable	$ 432,370
bond payable	$ 500,000
total liabilities	$ 2,299,820

This company wants to report all amounts using fair value under GAAP- the note and bond payable.

The current interest rate is 7%

note receivable- received on 2/1/18 in return for service contract term: no interest-3 payments of $300,000 each Feb

building-normal operations

construction-weighted average expenditures $375,000 add in capitalized interest-started and finished in 2018

equipment-no change in use

idle equipment-used equipment quoted at $82,000-original cost $450,000

broadcast equipment-10 year remaining life but company saves on royalties with contract-without contract royalties would be $126,000 per year

line of credit-7% interest rate

note payable-borrowed $500,000 Jan 1 2016-monthly payments for 15 years at 6%

bond payable-sold Jan 1 2010 at face value-interest only payments-coupon rate 5.5% paid semi annually until jan 1 2030

Show the journal entry to record the trade in idle of the idle equipment (sticker price $105,000) plus payment of $10,000 to the equipment dealer.Gave up old equipment and cash for new equipment on March 1 2019.