Problem 10-9

On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Cranes asset is referred to below as Asset A, and Cheyenne is referred to as Asset B. The following facts pertain to these assets.

		Asset A		Asset B
Original cost		$120,960		$138,600
Accumulated depreciation (to date of exchange)		50,400		59,220
Fair value at date of exchange		75,600		94,500
Cash paid by Crane, Inc.		18,900
Cash received by Cheyenne, Inc.				18,900

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Crane, Inc. and Cheyenne, Inc. in accordance with generally accepted accounting principles. (Round answers to O decimal places, e.g. 5,275. 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 O for the amounts.) Credit Account Titles and Explanation Debit Book Cheyenne, Inc.'s Books Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Crane, Inc. and Cheyenne, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g. 58,971. 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 O for the amounts.) Account Titles and Explanation Crane, Inc.'s Books Debit Credit Cheyenne, Inc.'s Books