Cedric Company recently traded in an older model computer for a new model. The old models book value was $315,000 (original cost of $685,000 less $370,000 in accumulated depreciation) and its fair value was $350,000. Cedric paid $75,000 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.)

Journal entry worksheet

• Record the exchange of assets.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1