Indigo Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,720plus trade-in, f.o.b. factory. Indigo Inc. paid $10,720cash and traded in used equipment.

The used equipment had originally cost $83,080;

it had a book value of $56,280and a secondhand fair value of $64,052

Freight and installation charges for the new equipment required a cash payment of $1,474.

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

If you could explain where you got the numbers (like accumulated depreciation for example) I would greatly appreciate it.