Carla Company purchased equipment on January 2, 2016, for $121,300. The equipment had an estimated useful life of 5 years with an estimated salvage value of $12,800.

Carla uses straight-line depreciation on all assets. On January 2, 2020, Carla exchanged this equipment plus $12,200 in cash for newer equipment.

The old equipment has a fair value of $50,400.

What is the journal entry to record the exchange on the books of Carla Company. Assume that the exchange has commercial substance.