At the beginning of the current year, Junk Company traded in an old machine having a carrying amount of P1,680,000 and paid a cash difference of P600,000 for a new machine with a cash price of P2,050,000. 1. What is the cost of the machine acquired in exchange? a. 1,680,000 b. 2,050,000 c. 1,450,000 d. 1,080,000 2. What amount of loss should be recognized on the exchange? a. 600,000 b. 230,000 c. 370,000 d.

At the beginning of the current year, Junk Company traded in an old machine having a carrying amount of P1,680,000 and paid a cash difference of P600,000 for a new machine with a cash price of P2,050,000. 1. What is the cost of the machine acquired in exchange? a. 1,680,000 b. 2,050,000 c. 1,450,000 d. 1,080,000 2. What amount of loss should be recognized on the exchange? a. 600,000 b. 230,000 c. 370,000 d.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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