Problem C-III- Plant Asset Disposal Entries. Prepare journal entries to record the following transaction in 2017 for Dorsett Company. 1.May1 Exchanged old store equipment and $80,000 cash for new store equipment. The old store equipment originally cost $160,000, and had a book value of $100,000 on the date of exchange. The old store equipment had a fair market value of $144,000 on the date of exchange. Assume depreciation on the old equipment has already been recorded for the current year. The exchange had commercial substance. 2. July 31 Exchanged a delivery truck and $40,000 cash for a new delivery truck. The old delivery truck originally cost $46,000 and had accumalated depreciation of $31,000 on the date of exchange. The fair value of the old delivery truck on the date of exchange was $12,000. Assume the depreciation on the truck has already been recorded for the current year. The exchange ad commercial substance. 3. Aug.31 Equipment with a 5-year useful life was purchased on January 1,2014, for $84,000 and was sold for $30,000. The equipment had been depreciated using the straight line method with an estimated salvage value of $12,000. Depreciation expense was last recorded on December 31, 2016.