Now record the sale of the equipment on April 1. Date Apr. 1 Accounts and Explanation Debit Credit Jan. 1 Apr. 1 Traded in old office equipment with book value of $30,000 (cost of $118,000 and accumulated depreciation of $88,000) for new equipment. Stora also paid $95,000 in cash. Fair value of new equipment is $131,500. Assume the exchange had commercial substance. Sold equipment that cost $42,000 (accumulated depreciation of $35,000 through December 31 of the preceding year). Stora received $2,100 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. Dec. 31 Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $7,000 residual value.