Engingeering wants to buy a new tractor by trading in its current tractor, which is the same model but several yrs older. The new tractor has a list price of $219,700. The old tractor was orginially purchased for $177,200, but has a current book value of $38,900.
The tractor dealer has offered a trade-in allowance of $38300 for the old tractor. Journalize the transactions required to properly dispose of the tractor.

It is not permitted to give you the entries in this forum. You have to show your work first so that a better guidance can be given. However, just a guidance, consider the exchange/trade in value as a cash receipt except that instead of cash you have paid a lesser amount for the new asset. The loss on disposal is the difference between the book value and trade in value.