During the current year, Indigo Construction trades an old crane that has a book value of $133,200 (original cost $207,200 less accumulated depreciation $74,000) for a new crane from Sweet Manufacturing Co. The new crane cost Sweet $244,200 to manufacture and is classified as inventory. The following information is also available.

		Indigo Const.			Sweet Mfg. Co.
Fair value of old crane		$121,360
Fair value of new crane					$296,000
Cash paid		174,640
Cash received					174,640

(a)

Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Indigo Construction and (2) Sweet Manufacturing. (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 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.	Indigo Construction
2.	Sweet Manufacturing
	(To record exchange of inventory)
	(To record cost of inventory)