Lorde Corporation recently acquired new equipment. In exchange, Lorde traded in an

existing asset that had an original cost of $60,000 and accumulated depreciation on

the date of exchange of $45,000. In addition, Lorde paid $40,000 cash to the

equipment manufacturer. The fair value of the old equipment is $17,000.

a. Prepare the journal entry to record the exchange transaction (assume the

transaction is for a genuine business reason