Question

Crane Company exchanges an industrial oven for an industrial freezer. The carrying amount of the industrial oven is $34,000 (cost $68,700 less accumulated depreciation $34,700). The oven’s fair value is $23,700 and cash of $5,050 is paid by Crane in the exchange.

Prepare the entry to record the exchange. (Credit account titles are automatically indented when the 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.)

Answer 1

Answer
Date	Account Titles and Explanation	Debit	Credit
	Equipment (New)	$     28,750		23700+5050
	Accumulated Depreciation	$     34,700
	Loss on Exchange of Plant Assets	$     10,300
	Equipment (Old)		$     68,700
	Cash		$       5,050
	(To record exchange of equipment)