Culver Company purchased equipment on January 2, 2016, for $123,200. The equipment had an estimated useful life of 5 years with an estimated salvage value of $13,000. Culver uses straight-line depreciation on all assets. On January 2, 2020, Culver exchanged this equipment plus $12,500 in cash for newer equipment. The old equipment has a fair value of $45,900. Prepare the journal entry to record the exchange on the books of Culver Company. Assume that the exchange has commercial substance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 2 Equipment 58400 Accumulated Depreciation Equipment 88000 Cash 10700 Gain on Disposal of Equipment 123200 Equipment 12500