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	$380
Insurance on the equipment after installation	$1,200
Delivery charges	$550
Set up costs	$450
Repairs due to accidental damages during installation	$330
Custom duties	$600
Power and other operating costs for using the machine during the year	$3,600

 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)