On the first day of the fiscal year, a new walk-in cooler with a list price of $52,100 was acquired in exchange for an old cooler and $40,300 cash. The old cooler had a cost of $45,000 and accumulated depreciation of $37,500. Assume the transaction has commercial substance.

a. Determine the gain to be recorded on the exchange. $fill in the blank

b. Journalize the entry to record the exchange. If an amount box does not require an entry, leave it blank.