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During the current year, Larkspur Construction trades an old crane that has a book value of $95.400 (original cost $148.400 less accumulated depreciation $53,000) for

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During the current year, Larkspur Construction trades an old crane that has a book value of $95.400 (original cost $148.400 less accumulated depreciation $53,000) for a new crane from Cullumber Manufacturing Co. The new crane cost Cullumber $174.900 to manufacture and is classified as inventory. The following information is also available. Larkspur Const. Cullumber Mfg.Co. $86,920 Fair value of old crane Fair value of new crane Cash paid $212,000 125,080 Cash received 125,080 Assuming that this exchange lacks commercial substance for Larkspur, prepare the journal entries on the books of (1) Larkspur Construction and (2) Cullumber 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 for the amounts.) Debit Credit No. Account Titles and Explanation Larkspur Construction 1. Equipment Accumulated Depreciation Equipment Loss on Disposal of Equipment Equipment Cash Cullumber Manufacturing Cash Equipment Sales Revenue (To record exchange of inventory) Cost of Goods Sold Inventory (To record cost of inventory) Assuming the same facts as those in (a), except that the fair value of the old crane is $103,880 and the cash paid is $108,120, prepare the journal entries on the books of (1) Larkspur Construction and (2) Cullumber 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 o for the amounts.) Debit Credit No. Account Titles and Explanation Larkspur Construction 1. 2 Cullumber Manufacturing (To record exchange of Inventory) (To record cost of inventory) Assuming the same facts as those in (b), except that the fair value of the old crane is $102,820 and the cash paid $109.180, prepare the journal entries on the books of (1) Larkspur Construction and (2) Cullumber 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 for the amounts.) Debit Credit No. Account Titles and Explanation 1. Larkspur Construction 2. Cullumber Manufacturing (To record exchange of inventory) (To record cost of inventory)

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