Question 3 During the current year, Marshall Construction trades an old crane that has an original cost $140,000 and accumulated depreciation $50,000) for a new crane from Brigham Manufacturing. Fair value of new crane is $200,000. Instructions (a) Prepare the journal entries of the exchange for Marshall Construction assuming: i. Fair value of the old crane is $100,000 and Marshall paid $100,000 to Brigham (Exchange has commercial substance); ii. Fair value of the old crane is $100,000 and Marshall paid $100,000 to Brigham (Exchange lacks commercial substance). (b) Prepare the journal entries of the exchange for Brigham Manufacturing in (i) to (ii) above assuming the new crane cost Brigham 160,000 to manufacture and is classified as inventory