Last Resort Builders (LRB) exchanged a three-year-old excavator for a new excavator that had a list price of $160,000. The old excavator originally cost $175,000 and had accumulated depreciation of $45,000 to the date of exchange. In addition to the $145,000 trade-in given for the old excavator (which was the old asset's fair value), LRB paid $10,000 cash to complete the deal. The list price for the new excavator is considered unreliable.

Required : Record the asset exchange.

Last Resort Builders (LRB) exchanged a three-year-old excavator for a new excavator that had a list price of $160,000. The old excavator originally cost $175,000 and had accumulated depreciation of $45,000 to the date of exchange. In addition to the $145,000 trade-in given for the old excavator (which was the old asset's fair value), LRB paid $10,000 cash to complete the deal. The list price for the new excavator is considered unreliable. Required Record the asset exchange