The old equipment went into liquidation
Borrow: Fixed Asset Liquidation 5500
Borrow: Accumulated Depreciation 104,500
Loan: Fixed Assets 110,000
Cleaning up costs and related taxes were incurred<
Borrow: Fixed Assets Liquidation 9000/(1+3%)×2%=174.76
Credit: Taxes Payable Value Added Tax Payable - Output Tax 174.76
Carry forward Net Gain or Loss on Fixed Assets
Borrow: Non-Operating Expenditure - Loss on Disposal of Non-current Assets 5674.76
Credit: Fixed Asset Liquidation 5674.76
Acquisition of New Fixed Assets
Borrow: Fixed Assets 58000
Borrow: Taxes Payable - VAT Payable - Input Tax 7540
Credit: Cash 49000
Credit: Non-Operating Income - Gain on Disposal of Non-Current Assets 9000+7540=16540