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Dark Room Corp. purchased equipment for $45,000. Total depreciation of $36,000 was recorded. On January 1, 2017, Dark Room exchanged the equipment for new equipment,

Dark Room Corp. purchased equipment for $45,000. Total depreciation of $36,000 was recorded. On January 1, 2017, Dark Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange had commercial substance.

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