chased a computer for $ 3 comma 300, debiting Computer Equipment. During 2016 and 2017, Smith's Auto comma Inc. recorded total depreciation of $ 2 comma 600 on the computer. On January 1, 2018, Smith's Auto comma Inc. traded in the computer for a new one, paying $ 2 comma 900 cash. The fair market value of the new computer is $ 4 comma 400. Journalize Smith's Auto comma Inc.'s exchange of computers. Assume the exchange had commercial substance. Let's begin by calculating the gain or loss on the exchange of computer equipment on January 1. Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss) Journalize Smith's Auto comma Inc.'s exchange of computers. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jan. 1