Traded in old office equipment with book value of $ 45 comma 000$45,000 (cost of $ 114 comma 000$114,000 and accumulated depreciation of $ 69 comma 000$69,000) for new equipment. LenoraLenora also paid $ 100 comma 000$100,000 in cash. Fair value of new equipment is $ 148 comma 000$148,000. Assume the exchange had commercial substance.
Apr. 1	Sold equipment that cost $ 12 comma 000$12,000 (accumulated depreciation of $ 8 comma 000$8,000 through December 31 of the preceding year). LenoraLenora received $ 2 comma 600$2,600 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a fivefive-year useful life and a residual value of $0.
Dec. 31	Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over fourfour years with a $ 8 comma 000$8,000 residual value.