Annie, Inc. purchased a computer for $5,000. During 2018 and 2019, the company recorded total depreciation of $4,000 on the computer. On January 1, 2020, the company exchanges the computer for a new one, paying $4,000 cash. The market value of the new computer is $6,000. Prepare the journal entry to record this transaction. Assume the exchange has commercial substance. Omit explanation.
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