Response to the following problem:
Ragtag Hospital purchased an item of equipment for $60,000 on January 1, 20X1. This equipment has an estimated useful life of ten years and a 20 percent salvage value. On October 1, 20X5, this equipment is traded, along with $26,000 cash, for similar equipment having a list price of $72,000.
Assuming the straight-line depreciation method, prepare the necessary entry to record the trade.