Tires Outlet purchases the following used items at an auction for $32,000 cash: a drill press, a lathe, and a heavy-duty air compressor. The equipment is in excellent condition except for the electric motor on the lathe, which will cost $720 to replace with a new motor. Tires Outlet determines that selling prices for the used items are as follows: drill press, $6,720; lathe with an operational motor, $19,200; and air compressor, $8,400.

Prepare the entry to record 

(a) acquisition of the equipment and 

(b) replacement of the motor.