Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABC Co. exchanged a used machine with XYZ Co. for a similar machine with less use. ABC Co. machine has cost of P500,000, accumulated depreciation of P400,000 and market value of P400,000, at the time of exchange. XYZ Co. machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of exchange. XYZ Co. gave ABC Co. P80,000 cash as part of the exchange. ABC Co. should record the cost of the machine received at   a. P80,000 b. P100,000 c. P160,000 d. P320,000 e. answer not given

ABC Co. exchanged a used machine with XYZ Co. for a similar machine with less use. ABC Co. machine has cost of P500,000, accumulated depreciation of P400,000 and market value of P400,000, at the time of exchange. XYZ Co. machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of exchange. XYZ Co. gave ABC Co. P80,000 cash as part of the exchange. ABC Co. should record the cost of the machine received at   a. P80,000 b. P100,000 c. P160,000 d. P320,000 e. answer not given

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
ABC Co. exchanged a used machine with XYZ Co. for a similar machine with less use. ABC Co. machine has cost of P500,000, accumulated depreciation of P400,000 and market value of P400,000, at the time of exchange. XYZ Co. machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of exchange. XYZ Co. gave ABC Co. P80,000 cash as part of the exchange. ABC Co. should record the cost of the machine received at
 
a. P80,000
b. P100,000
c. P160,000
d. P320,000
e. answer not given
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS