On December 1, 2010 Hight Company acquired a new delivery truck in exchange for cash an old delivery truck that it had acquired in 2001. The old truck was purchased for $20,000 and had an update book value $7,600 on the date of the exchange. At that date the old truck had market value of $8,000, in addition, Hight paid $26,000 cash for the new truck, which had list price of $36,000.

Required-Prepare the Journal entry necessary to record this equipment trade-in.