During the current year, Marshall Construction trades an old crane (old equipment) that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000) for a new crane (new equipment) from Brigham Manufacturing Co. In addition, Marshall pays Brigham $25,000. Brighams new crane has a carrying value of $100,000 on its books and a fair value of $125,000. Prepare the journal entries for both Marshall and Brigham if the fair value of the old crane is $100,000. Assume the transaction lacks commercial substance.

1) How much should Marshall recognize on the balance sheet for the new crane it received (i.e., what is the debit to equipment)?

2)What is Marshalls dollar gain or loss resulting from the transaction?

3)How much should Brigham recognize on the balance sheet for the old crane it received (i.e., what is the debit to equipment)?

4)What is Brighams dollar gain or loss resulting from the transaction?