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Use the following information for the nexct two (2) questions: On July 1, 2017. Banded Water Company traded in an old machine with a carrying amount of P10,000 for a similar new machine having a cash price of P32.000, and paid a cash difference of P19,000. 18) How much should the property be initially recognized? A. 32.000 B. 29,000 c. 22,000 D. 19,000 19) How much is the gain or loss from the trade in transactions? В. 3.000 A. None С. 7.000 D. 10,000

Use the following information for the nexct two (2) questions: On July 1, 2017. Banded Water Company traded in an old machine with a carrying amount of P10,000 for a similar new machine having a cash price of P32.000, and paid a cash difference of P19,000. 18) How much should the property be initially recognized? A. 32.000 B. 29,000 c. 22,000 D. 19,000 19) How much is the gain or loss from the trade in transactions? В. 3.000 A. None С. 7.000 D. 10,000

FINANCIAL ACCOUNTING
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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Use the following information for the next two (2) questions: On July 1, 2017, Banded Water Company traded in an old machine with a carrying amount of P10,000 for a similar new machine having a cash price of P32.000, and paid a cash difference of P19,000. 18) How much should the property be initially recognized? A. 32.000 В. 29.000 C. 22,000 D. 19,000 19) How much is the gain or loss from the trade in transactions? A. None В. 3.000 C. 7,000 D. 10,000
Transcribed Image Text:Use the following information for the next two (2) questions: On July 1, 2017, Banded Water Company traded in an old machine with a carrying amount of P10,000 for a similar new machine having a cash price of P32.000, and paid a cash difference of P19,000. 18) How much should the property be initially recognized? A. 32.000 В. 29.000 C. 22,000 D. 19,000 19) How much is the gain or loss from the trade in transactions? A. None В. 3.000 C. 7,000 D. 10,000
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