On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $435,000. Twin Pines received a trade-in allowance (fair market value) of $91,200 on the old equipment of a similar type and paid cash of $343,800. The following information about the old equipment is obtained from the account in the equipment ledger: cost, $303,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $198,000; annual depreciation, $18,000. Assume the exchange has commercial substance.

• Accumulated Depreciation-Equipment
• Cash
• Depreciation Expense-Equipment
• Equipment
• Repairs and Maintenance Expense
• Accounts Payable
• Gain on Exchange of Equipment
• Accounts Receivable
• Gain on Exchange of Equipment
• Loss on Exchange of Equipment
• Equipment (new)
• Equipment (old)

Commercial Suusalice. a. Journalize the entry to record the current depreciation of the old equipment to the date of trade-in. b. Journalize the entry to record the exchange transaction on July 1. If an amount box does not require an entry, leave it blank. lllll