Current Attempt in Progress

The following account balances are available from the ledger of Crane Corporation on December $31,2022$:

Common Shares $(17,000$ shares authorized and outstanding$)$

$$799,000$

Retained Earnings $($Deficit$)$

$(180,000)$

On January $2,2023,$ the corporation put into effect a shareholder$-$approved reorganization by agreeing to pass the common shares

over to the creditors in full payment of the $$250,000$ Notes Payable, writing up Buildings by $$134,600,$ and eliminating the deficit.

Assume that Crane follows ASPE.

Prepare the required journal entries for the financial reorganization of Crane. $($List all debit entries before credit entries. Credit account

titles are automatically indented when the 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.$)$

Account Titles and Explanation

Debit

Credit

$($To record the elimination of the deficit against share capital$)$

$($To record write$-$up of buildings to fair value and record the negotiated

change in control$)$