Homework answers / question archive / Crane Corporation wishes to exchange a machine used in its operations

Crane Corporation wishes to exchange a machine used in its operations

Accounting

Share With

Crane Corporation wishes to exchange a machine used in its operations. Crane has received the following offers from other companies in the industry. 1. 2. Cheyenne Company offered to exchange a similar machine plus $32,660. (The exchange has commercial substance for both parties) Ayayai Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Pina Company offered to exchange a similar machine, but wanted $4.260 in addition to Crane's machine (The exchange has commercial substance for both parties.) 3. In addition, Crane contacted Grouper Corporation a dealer in machines. To obtain a new machine. Crane must pay $132,060 in addition to trading in its old machine Ayayai Pina Crane $227.200 Cheyenne $170,400 Grouper $184,600 $215,840 Machine cost Accumulated depreciation Fair value 85,200 63,900 100,820 $227200 106,500 134.900 -0- 130,640 97,980 130,640 262.700 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (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.)