financeOn July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $220,000. Twin Pines received a trade-in allowance (fair market value) of$45,000 on the old equipment of a similar type and paid cash of $175,000. The following information about the old equipment is obtained from the account in the equipment ledger: cost,$180,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $120,000; annual depreciation,$12,000. Assuming the exchange has commercial substance, journalize the entries to record (*b*) the exchange transaction on July 1.