Crane Corp. exchanged Building 24, which has an appraised value of $1,805,000, a cost of $2,723,000, and accumulated depreciation of $1,245,000, for Building M which belongs to Bramble Ltd. Building M has an appraised value of $1,577,000, a cost of $3,177,000, and accumulated depreciation of $1,782,000. Bramble paid Crane the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. Prepare the entries on both companies' books, assuming the buildings are similar assets and there is no commercial substance for either company. (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 O for the amounts. List all debit entries before credit entries.)

Crane Corp. exchanged Building 24, which has an appraised value of $1,805,000, a cost of $2,723,000, and accumulated depreciation of $1,245,000, for Building M which belongs to Bramble Ltd. Building M has an appraised value of $1,577,000, a cost of $3,177,000, and accumulated depreciation of $1,782,000. Bramble paid Crane the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. Prepare the entries on both companies' books, assuming the buildings are similar assets and there is no commercial substance for either company. (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 O for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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305. Subject : - Accounting
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