Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a carrying amount of P300,000.  Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange.  Assume that the fair value of the delivery vehicle is P420,000.  The exchange has commercial substance.   How much gain or loss should be recorded by Company B?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a carrying amount of P300,000.  Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange.  Assume that the fair value of the delivery vehicle is P420,000.  The exchange has commercial substance.

 

How much gain or loss should be recorded by Company B?

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