On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) withYEN's non-monetary asset (machinery). The following data were madeavailable:PAOLO:EquipmentP4,400,000Accumulated depreciation2,000,000Fair value of the Equipment3,000,000YEN:MachineryP3,700,000Accumulated depreciation1,800,000Fair value of the machinery2,100,000The exchange has significantly changed the cash flows of each entity.How much is cost of the new asset of PAOLO?

Name: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) w
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Description: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) withYEN's non-monetary asset (machinery). The following data were madeavailable:PAOLO:EquipmentP4,400,000Accumulated depreciation2,000,000Fair value of the Equipment3,000,000YEN:Mac

As per the standard related to property plant and equipment: The exchange of nonmonetary assets is…

Business

Accounting

On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with (EN's non-monetary asset (machinery). The following data were made available: PAOLO: Equipment P4,400,000 Accumulated depreciation 2,000,000

On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with (EN's non-monetary asset (machinery). The following data were made available: PAOLO: Equipment P4,400,000 Accumulated depreciation 2,000,000

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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On july 1, 2021, JULIA exchanged its-non-monetary asset (equipment) with GERALD's non-monetary asset (machinery). the following data were made available: JULIA: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 500,000 GERALD: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The transaction lack commerical substance. How much is the cost of the new asset of JULIA?
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