Question: During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for

During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for a new crane from Brigham Manufacturing Co. The new crane cost Brigham $70,000 to manufacture and is classified as inventory. The following information is also available

Marshall Const. Brigham Mfg. Co.

Fair value of old crane $97,000

Fair value of new crane $87,300

Cash paid 9,700

Cash received 9,700

Instructions (a) Assuming this exchange lacks commercial substance for Marshal, prepare the journal entries on the books of Marshall Construction. (b) Now assume that $103,000 cash is paid (instead of $9,700 received), the fair value of the new crane is not specified, and other conditions remain the same. Prepare the journal entries on the books of Marshall Construction.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Nonmonetary Exchanges During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for a new...

During the current year, Marshall Construction trades an old crane that has a book value of 90,000 (original cost 140,000 less accumulated depreciation 50,000) for a new crane from Brigham...

(L04) (Nonmonetary Exchanges) During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for a...

P9.10 (LO 3) (Non-Monetary Exchanges) During the current year, Marshall Construction trades an old crane that has a book value of 90,000 (original cost 140,000 less accumulated depreciation 50,000)...

Problem 10-10 During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for a new crane from...

P10.10 (LO 3) (Nonmonetary Exchanges) During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation...

During the current year, Marshall Construction trades an old crane that has a book value of $158,670 (original cost $246,820 less accumulated depreciation $88,150) for a new crane from Brigham...

During the current year, Marshall Construction trades an old crane that has a book value of $129,690 (original cost $201,740 less accumulated depreciation $72,050) for a new crane from Brigham...

P10.10 (LO3) (Nonmonetary Exchanges) During the current year, Marshall Construction trades an old crane that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000)...

During the current year, Marshall Construction trades an old crane that has a book value of $210,600 (original cost $327,600 less accumulated depreciation $117,000) for a new crane from Brigham...

The gyromagnetic ratio of 31P is 1.08 x 108 rad s-1 T-1. This nucleus shows a wide range of shifts, covering some 700 ppm. Estimate the minimum 90 pulse length you would need to excite peaks over...

An oil company is drilling a series of new wells on the perimeter of a producing oil field. About 20% of the new wells will be dry holes. Even if a new well strikes oil, there is still uncertainty...

Absolutism would be the excess of . . . Group of answer choices the demagogue the panderer

when doing qualitative research on topic How 'workers' the motivation affects productivity?Aim understand the relationship between workers motivation and productivity.What questions to ask...

Know how and when to create, maintain, and purge anecdotal note files concerning employees

Understand related dimensions of termination, including unemployment compensation and employee privacy

Be familiar with a means for determining who is discharged and who remains in a layoff