Vexa Corporation incurred the following expenditures for the purchase and use of equipment which was placed into service on March 31, 2016. Expenditure Amount List price of the equipment $38 200 Sales taxes $2,700 Advertising costs 5380 Insurance on the equipment after installation 51200 Delivery charges $550 Set up costs 5450 Repairs due to accidental damages during installation 5330 Custom duties Power and other operating costs for using the machine during the year $3,600 5600 The company estimated the useful life of the equipment to be 6 years with an expected salvage value of $2,180. The straight-line method for depreciation was selected. On June 30, 2018, the company observed that if it exchanges the equipment for a new similar one, the result will be more productivity and an increase in total revenues. Accordingly, a decision was taken on that date to exchange it for a new similar one. On June 30, 2018, the old equipment's fair value was $25,500, and the value of the new equipment was $35,000. Required: Prepare the journal entry to record the disposal of the equipment on June 30, 2018. (Show all your necessary calculations)