Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $ 10,240 plus trade-in, f.o.b. factory. Bonita Inc. paid $ 10,240 cash and traded in used equipment. The used equipment had originally cost $ 79,360; it had a book value of $ 53,760 and a secondhand fair value of $ 61,184, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $ 1,408.

Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.

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