Wash N' Dry Company Purchased Equipment for $45,000

question 49

Essay

Wash N' Dry Company purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Wash N' Dry exchanges the equipment for new equipment,paying $54,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.Omit explanation.

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