Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a building for Indoy's equipment. The following information are as follows: Hartney (Machine) Indoy (Equipment) Cost of asset exchanged P900,000 P800,000 Accumulated depreciation 540,000 320,000 Fair value of asset exchanged 400,000 350,000 Cash received (paid) 50,000 (50,000) Assuming that the transaction has a commercial substance, how much should Indoy recognize gain/loss in the exchange
Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a building for Indoy's equipment. The following information are as follows: Hartney (Machine) Indoy (Equipment) Cost of asset exchanged P900,000 P800,000 Accumulated depreciation 540,000 320,000 Fair value of asset exchanged 400,000 350,000 Cash received (paid) 50,000 (50,000) Assuming that the transaction has a commercial substance, how much should Indoy recognize gain/loss in the exchange
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...
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Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a building for Indoy's equipment. The following information are as follows:
| Hartney (Machine) | Indoy (Equipment) | |
| Cost of asset exchanged | P900,000 | P800,000 |
| 540,000 | 320,000 | |
| Fair value of asset exchanged | 400,000 | 350,000 |
| Cash received (paid) | 50,000 | (50,000) |
Assuming that the transaction has a commercial substance, how much should Indoy recognize gain/loss in the exchange? (Note: Indicate "( )" if loss)
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