Jaguar Co., a water distiller, acquired new bottling equipment with a list price of $385,000. Jaguar received a trade-in allowance of $100,000 on the old equipment of a similar type, paid cash of $35,000, and gave a series of five notes payable for the remainder. The following information about the old equipment is obtained from the account in the equipment ledger; cost - $280,000; accumulated depreciation on December 31 of the previous year - $144,000; annual depreciation - $16,000. Journalize the entries to record (a) current depreciation of the old equipment to the date of trade-in (b) exchange transaction on July 1 for financial reporting purposes