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.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 23-19 (AICPA Adapted)
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
с. 1,450,000
d. 1,080,000
2. What amount of loss should be recognized on the
exchange?
a. 600,000
b. 230,000
с. 370,000
d.
660
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