Equipment was initially acquired for $$409,000$ and has Accumulated Depreciation of $$306,000.$ The business exchanges this equipment for new equipment. The new equipment has a fair value of $$102,000$ and the business pays $$60,000$ cash. Assume the exchange has commercial substance. The journal entry for the exchange would be:

A$.$ Equipment $($new$)$

Accumulated Depreciation $-$ Equipment

Cash

Equipment $($old$)$

Loss on Disposal

B$.$ Equipment $($old$)$

Loss on Disposal

Accumulated Depreciation $-$ Equipment

Cash

Equipment $($new$)$

C$.$ Equipment $($new$)$

Accumulated Depreciation $-$ Equipment

Loss on Disposal

Cash

Equipment $($old$)$

D$.$ Equipment $($new$)$

Cash

Loss on Disposal

Equipment $($old$)$

Accumulated Depreciation $-$ Equipment

$409,000$

$59,000$

$306,000$

$60,000$

$102,000$

$102,000$

$60,000$

$553,000$

$409,000$

$306,000$