Dur Company purchased equipment on January 2, 2013, for $112,000. The equipment had an estimated useful life of 5 years with an estimated salvage value of $12,000. Dur uses straight-line depreciation on all assets. On January 2, 2017, Dur exchanged this equipment plus $12,000 in cash for newer equipment. The old equipment has a fair value of $50,000. Assume that the exchange has commercial substance.