Blue Limited owns 90 % of Crane Inc. During 2020 , Blue acquired a machine from Crane

Fantastic news! We've Found the answer you've been seeking!

Question:

Blue Limited owns 90 % of Crane Inc. During 2020 , Blue acquired a machine from Crane in exchange for its own used machine . Both companies are in the tool - making business . The agreed exchange amount , although the transaction is has an angel cost $ 6,000 and carries its machine on its books at a carrying amount of $ 1,400 , whereas Blue has an original cost of $ 7,000 and carries its machine on books at a carrying amount of $ 1,560 . Neither company has a balance in the Surplus mon to previous related party transactions . Both Blue and Crane ASPE . 51, 750 Using the related - party decision tree and answer the following .

Prepare the journal entries to record the exchange for both Blue and Crane under the assumption that the transaction is in the normal course of operations for either company , and the transaction has commercial substance . ( Credit account are indented when the amount is entered . Do not indent manually . )

Prepare the journal entries to record the exchange for both Blue and Crane under the assumption that the transaction is not in the normal course of operations for either company, and the transaction does not have commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Prepare the journal entries to record the exchange for both Blue and Crane under the assumption that the transaction is in the normal course of operations for each company, and the transaction has commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Prepare the journal entries to record the exchange for both Blue and Crane under the assumption that the transaction is in the normal course of operations for each company, and the transaction does not have commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)