Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: Price...
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Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: • Price of truck - P2,500,000 • Charge for extra equipment - P150,000 • Value added tax (recoverable) - P300,000 • Insurance for one year - P100,000 • • Motor vehicle registration - P20,000 Trade in value of old truck - P2,000,000 Cash paid - P2,870,000 The cost of the old truck was P1,500,000 with carrying amount of P400,000 and fair value of P350,000. 1. What is the cost of the new truck in the exchange? 2. What amount should be recognized as loss on exchange? Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: • Price of truck - P2,500,000 • Charge for extra equipment - P150,000 • Value added tax (recoverable) - P300,000 • Insurance for one year - P100,000 • • Motor vehicle registration - P20,000 Trade in value of old truck - P2,000,000 Cash paid - P2,870,000 The cost of the old truck was P1,500,000 with carrying amount of P400,000 and fair value of P350,000. 1. What is the cost of the new truck in the exchange? 2. What amount should be recognized as loss on exchange?
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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