Exercise 10-14 (Algo) Nonmonetary exchange [LO10-6]

Cedric Company recently traded in an older model of equipment for a new model. The old models book value was $234,000 (original cost of $514,000 less $280,000 in accumulated depreciation) and its fair value was $260,000. Cedric paid $66,000 to complete the exchange which has commercial substance.

Required:

Prepare the journal entry to record the exchange.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.