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Brown Company purchased equipment for $ 17,000. Brown recorded total depreciation of $ 14,000 on the equipment. On January 1, 2018, Brown traded in the

Brown Company purchased equipment for $ 17,000. Brown recorded total depreciation of $ 14,000 on the equipment. On January 1, 2018, Brown traded in the equipment for new equipment, paying $ 23,500 cash. The fair market value of the new equipment is $ 25,700. Journalize Brown Company's exchange of equipment. Assume the exchange had commercial substance.

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