Mann, Inc., Which owes Doran Co. $600,000 in notes payable with accrued interest

of $54,000, is in financial difficulty. To settle the debt, Doran agrees to accept from

Mann equipment with a fair value of $570,000, an original cost of $840,000, and

accumulated depreciation of $195,000. Prepare the journal entry on Mann 's books

to record the settlement of this debt.