On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?

On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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