During the current year, Ayayai Construction Ltd$.$ traded an old crane that had a book value of $$127,800($original cost $$198,800$ less

accumulated depreciation $$71,000)$ for a new crane from Pina Manufacturing Inc. The new crane cost Pina $$234,300$ to manufacture

and is classified as inventory. The following information is also available.

Ayayai Const. Pina Mfg$.$ Inc.

Fair value of old crane

$$116,440$

Fair value of new crane

$$284,000$

Cash paid

$167,560$

Cash received

$167,560$

Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of $(1)$ Ayayai

Construction and $(2)$ Pina Manufacturing. $($Credit account titles are automatically indented when amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit

entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

Ayayai Construction Ltd$.$

Pina Manufacturing Inc.

$($To record exchange of inventory$)$

$($To record cost of inventory$)$