How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment has an original cost of P1,500,000, accumulated depreciation of P600,000, and fair value of P1,000,000. The new equipment obtained through exchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity
How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment has an original cost of P1,500,000, accumulated depreciation of P600,000, and fair value of P1,000,000. The new equipment obtained through exchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much should be recorded as the purchase price of the
individual PPE items:
5. The old equipment has an original cost of P1,500,000,
P1,000,000. The new equipment obtained through
exchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.
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