Show solution in good accounting form significantly different from the cash flows of the old truck.P200,000 cash. The fair value of the truck received wasAmiable Company exchanged a truck with a carrying amountof P1,200,000 and a fair value of P2,000,000 for a truck andProblem 23-20 (AICPA Adapted)aP1,800,000.de cash flows from the new truck are not expected to be. At what amount should the truck received in theexchange be recorded?a. 2,000,000b. 1,400,000c. 1,000,000d. 1,800,0002 What is the gain on exchange?a. 800,000b. 600,000c. 200,000d.

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Accounting

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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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Question

Show solution in good accounting form

significantly different from the cash flows of the old truck.
P200,000 cash. The fair value of the truck received was
Amiable Company exchanged a truck with a carrying amount
of P1,200,000 and a fair value of P2,000,000 for a truck and
Problem 23-20 (AICPA Adapted)
a
P1,800,000.
de cash flows from the new truck are not expected to be
. At what amount should the truck received in the
exchange be recorded?
a. 2,000,000
b. 1,400,000
c. 1,000,000
d. 1,800,000
2 What is the gain on exchange?
a. 800,000
b. 600,000
c. 200,000
d.

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