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The accounting entry is:

Debit F/A- New Car Cost 28676

Debit Old Loan 15259

Debit Old Car Accumulated Depreciation 24,370

Total Debits 68305

Credit New Loan 31435

Credit Cash 3000

Credit Gain 9500

Credit F/A Old Car Cost 24,370

Total Credits 68305

Whether the 9500 gain is taxable or not is a tax question.

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