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Question 6 Crane Limited exchanged equipment that uses in its manufacturing operations for similar equipment that is used in the operations of Pronghorn Limited. Crane also paid Pronghorn $3,000 in cash. The following information pertains to the exchange. Crane Equipment (cost) $58,000 Accumulated depreciation 30,500 Fair value of equipment 29,000 Pronghorn $61,000 20,500 32,000 Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance. (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.) Crane Limited Debit Account Titles and Explanation Credit Pronghorn Limited Debit Account Titles and Explanation Credit SHOW LIST OF ACCOUNTS Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined not to have commercial substance. (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.) Crane Limited Debit Account Titles and Explanation Credit Pronghorn Limited Debit Account Titles and Explanation Credit

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