20.Charles Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. Charles Company paid P500,000 cash in the exchange. Determine the following: (1) Initial cost of the newly acquired equipment (2) Gain or loss on exchange a. (1) 800,000; (2) 20,000 gain b. (1) 780,000; (2) 20,000 loss c. (1) 780,000; (2) 0 d. (1) 800,000; (2) 0
20.Charles Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. Charles Company paid P500,000 cash in the exchange. Determine the following: (1) Initial cost of the newly acquired equipment (2) Gain or loss on exchange a. (1) 800,000; (2) 20,000 gain b. (1) 780,000; (2) 20,000 loss c. (1) 780,000; (2) 0 d. (1) 800,000; (2) 0
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 14PB: Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia...
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20.Charles Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. Charles Company paid P500,000 cash in the exchange.
Determine the following:
(1) Initial cost of the newly acquired equipment
(2) Gain or loss on exchange
Determine the following:
(1) Initial cost of the newly acquired equipment
(2) Gain or loss on exchange
a. (1) 800,000; (2) 20,000 gain
b. (1) 780,000; (2) 20,000 loss
c. (1) 780,000; (2) 0
d. (1) 800,000; (2) 0
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