Pronghorn Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is

$$50,000($cost $$79,600$ less accumulated depreciation $$29,600).$ Its fair value is $$23,700,$ and cash of $$7,500$ is paid.

Prepare the entry to record the exchange, assuming the transaction has commercial substance. $($List all debit entries before credit entries.

Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $0$ for the amounts. Include in your journal entry separate account entries for both the new and old equipment.$)$

Account Titles and Explanation

Debit

Credit

new equipmnent

Accumulated Depreciation$-$Equipment

Gain on Disposal of Plant Assets

old eqipment

Cash