Question - Splish Company purchased equipment on January 2, 2013, for $ 111,400. The equipment had an estimated useful life of 5 years with an estimated salvage value of $ 12,400. Splish uses straight-line depreciation on all assets. On January 2, 2017, Splishexchanged this equipment plus $ 12,200 in cash for newer equipment. The old equipment has a fair value of $ 46,200.
Prepare the journal entry to record the exchange on the books of Splish Company. Assume that the exchange has commercial substance.