Lorde Corporation recently acquired new equipment. In exchange, Lorde traded in an existing asset that had an original cost of $60,000 and accumulated depreciation on the date of exchange of $45,000. In addition, Lorde paid $40,000 cash to the equipment manufacturer. The fair value of the old equipment is $17,000.

a. Prepare the journal entry to record the exchange transaction (assume the transaction is for a genuine business reason - it has "commercial substance").