Question: During the current year, Nash Construction trades an old crane that has a book value of $91,800 (original cost $142,800 less accumulated depreciation $51,000) for

During the current year, Nash Construction trades an old crane that has a book value of $91,800 (original cost $142,800 less accumulated depreciation $51,000) for a new crane from Crane Manufacturing Co. The new crane cost Crane $168,300 to manufacture and is classified as inventory. The following information is also available.

Nash Const.

Crane Mfg. Co.
Fair value of old crane $83,640
Fair value of new crane $204,000
Cash paid 120,360
Cash received 120,360

Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Nash Construction and (2) Crane Manufacturing.

Assuming that this exchange lacks commercial substance for Nash, prepare the journal entries on the books of (1) Nash Construction and (2) Crane Manufacturing.

*This is a multi-step problem but I have had issues with these 2 sections.

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!

Q:

The figure shows a formed sheet-steel bracket. Instead of securing it to the support with machine screws, welding has been proposed. If the combined stress in the weld metal is limited to 900 psi,...

Q:

During the current year, Nash Construction trades an old crane that has a book value of $91,800 (original cost $142,800 less accumulated depreciation $51,000) for a new crane from Crane Manufacturing...

Q:

During the current year, Nash Construction trades an old crane that has a book value of $93,600 (original cost $145,600 less accumulated depreciation $52,000 ) for a new crane from Crane...

Q:

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...

Q:

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...

Q:

During the current year, Garrison Construction trades an old crane that has a book value of $80,000 (original cost $140,000 less accumulated depreciation $60,000) for a new crane from Keillor...

Q:

(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...

Q:

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...

Q:

Current Attempt in Progress During the current year, Wildhorse Construction trades an old crane that has a book value of $122,400 (original cost $190,400 less accumulated depreciation $68,000) for a...

Q:

During the current year, Waterway Construction trades an old crane that has a book value of $124,200 (original cost $193,200 less accumulated depreciation $69,000) for a new crane from Wildhorse...

Q:

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...

Q:

The owners equity accounts for Alexander International are shown here: Common stock ($0.50 par value) $ 20,000 Capital surplus 285,000 Retained earnings 638,120 Total owners equity $ 943,120 a - 1 If...

Q:

Which of the following is a valid class declaration? class C { private int x; }; Class C { int x; }; class C { int x; }; public class C { int x; }; class C { int x; } None of the given options is a...

Q:

A farmer needs to construct two adjoining rectangular pens of identical areas, as shown in the figure below. If each pen is to have an area of 1 3 , 8 7 2 square feet, what dimensions will minimize...

Q:

Question 1 7 The four eras of the evolution of marketing are ( 1 ) production, ( 2 ) selling, ( 3 ) advertising, and ( 4 ) stakeholder relationships. tue false

Q:

DO CONTRACT WORKERSGETTHE SAME ENTITLEMENTS AS EMPLOYEES?

Q:

2.6 Explain the role of minimums established in employment standards legislation and the enforcement process.

Q:

2.5 Describe the purpose of employment equity programs.