Question: During the current year, Nash Drilling trades an old derrick that has a book value of $340,800 (original cost $852,000 less accumulated depreciation $511,200) for

During the current year, Nash Drilling trades an old derrick that has a book value of $340,800 (original cost $852,000 less accumulated depreciation

During the current year, Nash Drilling trades an old derrick that has a book value of $340,800 (original cost $852,000 less accumulated depreciation $511,200) for a new derrick from Crane Heavy Equipment Co. The new derrick cost Crane $738,400 to manufacture and is classified as inventory. The following information is also available. Nash Drilling $298,200 Crane Heavy Equip Co. Fair value of old derrick Fair value of new derrick Cash paid Cash received $1,107,600 809,400 809,400 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Nash Drilling and (2) Crane Heavy Equipment. (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 for the amounts.) Debit No. Account Titles and Explanation 1. Nash Drilling Credit 2. Crane Heavy Equipment (To record exchange of inventory) (To record cost of inventory)

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