Novak Company 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 $$13,200.$ Novak uses straight$-$line depreciation on all assets. On January $2,2020,$ Novak exchanged this

equipment plus $$13,100$ in cash for newer equipment. The old equipment has a fair value of $$53,300.$

Prepare the journal entry to record the exchange on the books of Novak Company. Assume that the exchange has commercial

substance. $($If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically

indented when amount is entered. Do not indent manually.$)$

Date

Account Titles and Explanation

Jan. $2$

Debit