Cedric company recently traded in an older model of equipment for a new model. the old model’s book value was $334,000 (original cost of $694,000 less $360,000 in accumulated depreciation) and its fair value of the old equipment is $310,000. cedric paid $74,000 to complete the exchange which has commercial substance. required:
prepare the journal entry to record the exchange. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of