On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?

On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?

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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Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1. Acquired a more advanced machine worth 10,000 by paying 2,000 cash and giving up a machine that had originally cost 40,000 and has a book value of 12,000, 2. Acquired a building worth 55,000 by paying 5,000 cash and giving up a piece of land that had originally cost 35,000. 3. Acquired a more advanced machine worth 20,000 by paying 5,000 cash and giving up a machine that had originally cost 13,000 and has a book value of 11,000. 4. Acquired a car by giving up a truck that had originally cost 20,000, has a book value of 15,000, and has a blue book value of 16,800. In addition, the company received 1,000 cash. Required: Prepare Bremers journal entry for each exchange. Assume all exchanges were determined to have commercial substance.
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On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN's non- monetary asset (machinery). The following data were made available: PAOLO: Equipment Accumulated depreciation Fair value of the Equipment P4.400,000 2.000,000 3,000,000 YEN: Machinery Accumulated depreciation Fair value of the machinery P3,700,000 1,800,000 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is cost of the new asset of PAOLO?
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