Given the following:

Equipment with an original cost of $455,000 and accumulated depreciation of $172,000 is traded for a new piece of equipment with a fair value of $285,000

Cash of $7,000 is received.

a) What should the company record as the cost of the new asset?

b) How much gain is recognized?

c) What is the journal entry to record the cost of the new asset?

Required: Show all work using Excel