Sunland Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $$10,080$ plus trade$-$in$,$ f$.$o$.$b$.$ factory. Sunland Inc. paid $$10,080$ cash and traded in used equipment. The used equipment had originally cost $$78,120$; it had a book value of $$52,920$ and a secondhand fair value of $$60,228,$ as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $$1,386.$

$($a$)$

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

Account Titles and Explanation

Debit

Credit