January 2 ,2014, traded in office equipment for new equipment that is similar. The list price of the new office equipment is $15,000. Paid $9,000 cash and received a trade-in allowance of $6,000 for the old equpiment. The old equipment had been purchased on January 3, 2010, for $12,000. The old equipment has an estimated useful life og 5 years and a salvage value of $2,000. Depreciation on the old equipment was last recorded on December 31,2013.

Prepare Journal entry for Financial Accounting Rules

Repare Journal entry for the Income Tax method.