Red Corporation purchased equipment for $ 12 comma 000. Red recorded total depreciation of $ 3 comma 000 on the equipment. On January 1 comma 2018 comma Red traded in the equipment for new equipment, paying $ 23 comma 500 cash. The fair market value of the new equipment is $ 32 comma 100. Journalize Red Corporation's exchange of equipment. Assume the exchange had commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss) Journalize Red Corporation's exchange of equipment. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jan. 1