MetlockCompany purchased equipment on January 2, 2016, for $105,700. The equipment had an estimated useful life of 5 years with an estimated salvage value of $11,600.Metlockuses straight-line depreciation on all assets. On January 2, 2020,Metlockexchanged this equipment plus $12,000in cash for newer equipment. The old equipment has a fair value of $45,700.

Prepare the journal entry to record the exchange on the books ofMetlockCompany. Assume that the exchange has commercial substance