On the first day of the fiscal year, a new walk-in cooler with a list price of $52,500 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $43,000 and accumulated depreciation of $38,800. Assume the transaction has commercial substance. a. Determine the gain to be recorded on the exchange. b. Journalize the entry to record the exchange. If an amount box does not require an entry, leave it blank or enter "0". Accumulated Depreciation Gain on Exchange of Equipment Cash Merchandise is sold for cash. The selling price of the merchandise is $5,700 and the sale is subject to a 6% state sales tax. The journal entry to record the sale would include a credit to Sales for $6,042 Sales for $5,700 OCash for $5,700 OSales Tax Payable for $342