Need help with 2 f)

2. Perth Construction Company The Perth Construction Company purchased a piece of machinery on June 29, 1986 for $53,000. Freight costs came to $800. It cost $1,700 to install and test the machinery. At this time, it was estimated that the machine would be used for six years and would have a trade-in value of $8,000 at that time. In March 1989, the owners realized that this machinery would last only five years.

On July 2, 1990, the machine broke down, and rather than repair it, the company decided to trade it in on a new machine. The new machine had a market value of $70,000 and a trade-in allowance of $15,000 was given on the old machine. The balance was paid in cash.

f) Prepare the journal entry for the July 2, 1990 transaction.