Obssuth Company is trading in its old computer system for an ERP system. The old system is on the books at a cost of $ 1,270,000 with accumulated depreciation of $ 885,000. The ERP has a price of $ 4,500,000 installed and debugged, but the manufacturer has agreed to reduce this amount by $ 250,000 in return for Obssuth’s old system. Prepare the journal entry to record the acquisition of the new ERP system.
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