During the current year, Buffalo Construction trades an old crane that has a book value of $117,000(original cost $182,000less accumulated depreciation $65,000) for a new crane from Carla Manufacturing Co. The new crane cost Carla $214,500to manufacture and is classified as inventory. The following information is also available.

Buffalo Const. Carla Mfg. Co.

Fair value of old crane $106,600

Fair value of new crane $260,000

Cash paid 153,400

Cash received 153,400