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During the current year, Garrison Construction ttaded in two relatively new small cranes (cranes no. 6RTand S79) for a larger crane that Garrison expects will be more useful for the particular contracts that the company has to fulfill over the next couple of years. The new crane is acquired from Pisani Manufacturing, which has agreed to take the smaller equipment as trade-ins and also pay $17,500 cash to Garrison. The new crane cost Pisani $165,000 to manufacture and is classified as inventory. The following information is available:
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