Cedric Company recently traded in an older model computer for a new model. The old models book value was $378,000 (original cost of $778,000 less $400,000 in accumulated depreciation) and its fair value of the old equipment is $350,000. Cedric paid $78,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Equipmentnew 428,000

Accumulated depreciation 400,000

Gain ???

Equipmentold 778,000

Cash 78,000