Unipal Company exchanged an old forklift with an original cost of $20,000, accumulated depreciation to date of $15,000, and a fair value of $6,000. The new forklift list price is $25,000. A trade-in allowance of $7,000 was given for the old forklift. Which of the following is the correct journal entry to record the exchange?

Select one: a. New Equipment 38,000 Old Equipment 20,000 Cash 18,000 b. New Equipment 23,000 Accumulated Depreciation 15,000 Equipment 20,000 Cash 18,000 c. New Equipment 24,000 Accumulated Depreciation 15,000 Old Equipment 20,000 Gain on Disposal 1,000 Cash 18,000

d. New Equipment 23,000 Accumulated Depreciation 15,000 Old Equipment 20,000 Cash 17,000 Gain on Disposal 1,000

Aa