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 Brigham Manufacturing Co The new crane cost Brigham $165,000 to manufacture and is classified as inventory The following information is also available Marshall Const Brigham Mfg Co Fair value of old crane $82,000 Fair value of new crane $200,000 Cash paid 118,000 Cash received 118,000 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham Manufacturing 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 Brigham Manufacturing Co The new crane cost Brigham $165,000 to manufacture and is classified as inventory The following information is also available Marshall Const Brigham Mfg Co Fair value of old crane $82,000 Fair value of new crane $200,000 Cash paid 118,000 Cash received 118,000 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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 ) No Account Titles and Explanation Debit Credit 1 Marshall Construction 2 Brigham Manufacturing (To record exchange of inventory) (To record cost of inventory) Assuming that this exchange lacks commercial substance for Marshall, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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 ) No Account Titles and Explanation Debit Credit 1 Marshall Construction 2 Brigham Manufacturing (To record exchange of inventory) (To record cost of inventory) Assuming the same facts as those in (a), except that the fair value of the old crane is $98,000 and the cash paid is $102,000, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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 ) No Account Titles and Explanation Debit Credit 1 Marshall Construction 2 Brigham Manufacturing (To record exchange of inventory) (To record cost of inventory) Assuming the same facts as those in (b), except that the fair value of the old crane is $97,000 and the cash paid $103,000, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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 ) No Account Titles and Explanation Debit Credit 1 Marshall Construction 2 Brigham Manufacturing (To record exchange of inventory) (To record cost of inventory)

Question: 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

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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 Brigham Manufacturing Co. The new crane cost Brigham $165,000 to manufacture and is classified as inventory. The following information is also available.

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

Problem 10-10

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

No.	Account Titles and Explanation	Debit	Credit
1.	Marshall Construction





2.	Brigham Manufacturing



	(To record exchange of inventory)


	(To record cost of inventory)

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

No.	Account Titles and Explanation	Debit	Credit
1.	Marshall Construction





2.	Brigham Manufacturing



	(To record exchange of inventory)


	(To record cost of inventory)

Assuming the same facts as those in (a), except that the fair value of the old crane is $98,000 and the cash paid is $102,000, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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.)

No.	Account Titles and Explanation	Debit	Credit
1.	Marshall Construction





2.	Brigham Manufacturing



	(To record exchange of inventory)


	(To record cost of inventory)

Assuming the same facts as those in (b), except that the fair value of the old crane is $97,000 and the cash paid $103,000, prepare the journal entries on the books of (1) Marshall Construction and (2) Brigham 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.)

No.	Account Titles and Explanation	Debit	Credit
1.	Marshall Construction





2.	Brigham Manufacturing



	(To record exchange of inventory)


	(To record cost of inventory)

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Marshall Const.

Brigham Mfg. Co.

Fair value of old crane

Fair value of new crane

Cash received

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