Wash N' Set Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Wash N' Set 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.

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The Answer of Wash N' Set Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Wash N' Set 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.