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chased a computer for $ 3 comma 300​, debiting Computer Equipment. During 2016 and 2017​, Smith's...

chased a computer for $ 3 comma 300​, debiting Computer Equipment. During 2016 and 2017​, Smith's Auto comma Inc. recorded total depreciation of $ 2 comma 600 on the computer. On January ​1, 2018​, Smith's Auto comma Inc. traded in the computer for a new​ one, paying $ 2 comma 900 cash. The fair market value of the new computer is $ 4 comma 400. Journalize Smith's Auto comma Inc.​'s exchange of computers. Assume the exchange had commercial substance. ​ Let's begin by calculating the gain or loss on the exchange of computer equipment on January 1. Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss) Journalize Smith's Auto comma Inc.​'s exchange of computers. ​(Record a single compound journal entry. Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.) Date Accounts and Explanation Debit Credit Jan. 1

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The gain/loss in exchange has been calculated and then a journal entry is passed as follows:

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