On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000  accumulated depreciation 2,000,000  cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available:

PAOLO:

Equipment P4,400,000 

accumulated depreciation 2,000,000 

cash received from gerald 3,000,000

YEN:

Machinery P3,700,000

Accumulated depreiation 1,800,000

Fair value of the machinery 2,100,000

The exchange has significantly changed the cash flows of each entity.

How much is the cost of the new asset of PAOLO?

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