Current Attempt in Progress During the current year. Pearl Drilling trades an old derrick that has a book value of $312,000 (original cost $780,000 less accumulated depreciation $468,000 ) for a new derrick from Martinez Heavy Equipment Co. The new derrick cost Martinez $676,000 to manufacture and is classified as inventory. The following information is also available, (a) Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Pearl Drilling and (2) Martinez Heavy Equipment. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select " No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Question 7 of 7 10.5 1. Pearl Drilling 2. Martinez Heavy Equipment (To record exchange of inventory)