On the First Day of the Fiscal Year, a New

Essay

On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.
Assume the transaction has commercial substance. (a) Determine the gain to be recorded on the exchange.
(b) Journalize the entry to record the exchange.