On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d P150.000
On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d P150.000
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 64P
Related questions
Question
![On March 1, 2019, Extreme Company exchanged an old machine having a cost of P450,000
and accumulated depreciation of P100,000 for another machine having a fair market value of
P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after
the exchange. Extreme company determined that the cash flows of the machine received
differ from the cash flows of the machine transferred.
51. What is the cost of the machine in the books of Extreme?
a. P280,000
b. P300,000
c. P440,000
d. P600,000
52. What amount of loss should the company recognize on the exchange?
a. None
b. P50,000
c. P122,000
d. P150,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff73bc929-18b0-40d1-92ef-1c54f5f4dd02%2Fc86261a9-349c-40d8-abc2-0273477aa158%2Fky7yw4t_processed.png&w=3840&q=75)
Transcribed Image Text:On March 1, 2019, Extreme Company exchanged an old machine having a cost of P450,000
and accumulated depreciation of P100,000 for another machine having a fair market value of
P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after
the exchange. Extreme company determined that the cash flows of the machine received
differ from the cash flows of the machine transferred.
51. What is the cost of the machine in the books of Extreme?
a. P280,000
b. P300,000
c. P440,000
d. P600,000
52. What amount of loss should the company recognize on the exchange?
a. None
b. P50,000
c. P122,000
d. P150,000
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