Dark Room Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Dark Room exchanged the equipment for new equipment,paying $65,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange had commercial substance.

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The Answer of Dark Room Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Dark Room exchanged the equipment for new equipment,paying $65,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange had commercial substance.