During the current year, Sage Construction trades an old crane that has a book value of $129,600 (original cost $201,600 less accumulated depreciation $72,000) for a new crane from Pronghorn Manufacturing Co. The new crane cost Pronghorn $237,600 to manufacture and is classified as inventory. The following information is also available. Sage Const. Pronghorn Mfg. Co. Fair value of old crane $118,080 $288,000 Fair value of new crane Cash paid Cash received 169,920 169,920 Your answer is partially correct. Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Sage Construction and (2) Pronghorn 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. Sage Construction Equipment Accumulated Depreciation-Equipment Loss on Disposal of Equipment Equipment Cash 2. Pronghorn Manufacturing (To record exchange of inventory) Assuming that this exchange lacks commercial substance for Sage, prepare the journal entries on the books of (1) Sage Construction and (2) Pronghorn 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 Ofor the amounts.) Debit Credit No. Account Titles and Explanation 1. Sage Construction 2. Pronghorn Manufacturing (To record exchange of inventory) (To record cost of inventory) Assuming the same facts as those in (a), except that the fair value of the old crane is $141,120 and the cash paid is $146,880, prepare the journal entries on the books of (1) Sage Construction and (2) Pronghorn 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 Ofor the amounts.) Debit Credit No. Account Titles and Explanation 1. Sage Construction 2. Pronghorn 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 $139,680 and the cash paid $148,320, prepare the journal entries on the books of (1) Sage Construction and (2) Pronghorn 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. Sage Construction 2. Pronghorn Manufacturing (To record exchange of inventory)