On Jan. 1, YR7. Scalia Co. trades equipment that cost $80,000 and has, as of December 31, YR6, accumulated depreciation of $63,000, in exchange for Kennedy Co.'s piece of similar equipment with a fair value of $42,000. In addition, Scalia receives $8,000 cash from Kennedy. The exchange lacks commercial substance. 1. Record all journal entries Scalia makes on Jan. 1, YR7. On Jan. 1, YR7. Scalia Co. trades equipment that cost $80,000 and has, as of December 31, YR6, accumulated depreciation of $63,000, in exchange for Kennedy Co.'s piece of similar equipment with a fair value of $42,000. In addition, Scalia receives $8,000 cash from Kennedy. The exchange lacks commercial substance. 1. Record all journal entries Scalia makes on Jan. 1, YR7