Brigade company purchased a equipment for 68,500 on January 1, 2017, with service life of six years and an estimated residual value of 4,000. It has recorded depreciation of the equipment using...

Brigade company purchased a equipment for 68,500 on January 1, 2017, with service life of six years and an estimated residual value of 4,000.

It has recorded depreciation of the equipment using straight-line method (SLM).

On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of 35,000. The transaction has commercial substance. Use this information to prepare a General Journal entries (without explanation) required to record the events for December 31, 2019.