During 2025, Lui Company completed the following transactions: 

Record the transactions in the journal of Lui Company.

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Jan. 1 Apr. 1 Dec. 31 Traded in old office equipment with book value of $60,000 (cost of $140,000 and accumulated depreciation of $80,000) for new equipment. Lui Company also paid $70,000 in cash. Fair value of new equipment is $135,000. Assume the exchange had commercial substance. Sold equipment that cost $40,000 (accumulated depreciation of $35,000 through December 31 of the preceding year). Lui Company received $1,000 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $4,000 residual value.