if the exchange is lacking in commercial substance, what would be the cost of the new asset acquired? In June 2021, Titanic Company acquired a machine in exchanged for a non-monetary asset with a cost of P1,200,000 and an accumulated depreciation ofP600,000 and paid a cash difference of P160,000. The market value of thenon-monetary asset was determined to be P650,000.

Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid

Answered: cost of the new asset acquired

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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