Assume the same facts as in E 10-14, except that the fair value of the old equipment is $170,000.

Data from in E 10-14

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $200,000.
Cedric paid $60,000 to complete the exchange which has commercial substance.

Required:
Prepare the journal entry to record the exchange.