Michelle Company. exchanges the rights to distribute a product in Brisbane which have a carrying amount of P2,000,000, for cash of P500,000 and the rights to distribute the same product in Canberra. The fair market value of the rights received is P1,700,000. The exchange is considered having the necessary commercial substance. At the time of exchange, the intangible asset should be initially recorded by Michelle Company at O P1,500,000 O P1,700,000 O P2,000,000 O P2,200,000

Michelle Company. exchanges the rights to distribute a product in Brisbane which have a carrying amount of P2,000,000, for cash of P500,000 and the rights to distribute the same product in Canberra. The fair market value of the rights received is P1,700,000. The exchange is considered having the necessary commercial substance. At the time of exchange, the intangible asset should be initially recorded by Michelle Company at O P1,500,000 O P1,700,000 O P2,000,000 O P2,200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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