Crane Corp. exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Blue Corp. Crane also paid Blue $3,100 in cash. The following information pertains to the exchange.

		Crane			Blue
Equipment (cost)		$51,500			$58,000
Accumulated depreciation		30,750			21,500
Fair value of equipment		24,500			27,600

Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance.

Crane Limited Account Titles and Explanation Debit Credit Blue Limlted Account Titles and Explanation Debit Credit