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On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD’s non-monetary asset (machinery). The following data were made available:   JULIA: Equipment                                           P4,400,000 Accumulated depreciation                  2,000,000 Cash received from Gerald                     500,000   GERALD: Machinery                                           P3,700,000 Accumulated depreciation                  1,800,000 Cash paid to Julia                                    500,000   The transaction lacks commercial substance.   How much is cost of the new asset of JULIA?

On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD’s non-monetary asset (machinery). The following data were made available:   JULIA: Equipment                                           P4,400,000 Accumulated depreciation                  2,000,000 Cash received from Gerald                     500,000   GERALD: Machinery                                           P3,700,000 Accumulated depreciation                  1,800,000 Cash paid to Julia                                    500,000   The transaction lacks commercial substance.   How much is cost of the new asset of JULIA?

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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On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD’s non-monetary asset (machinery). The following data were made available:

 

JULIA:

Equipment                                           P4,400,000

Accumulated depreciation                  2,000,000

Cash received from Gerald                     500,000

 

GERALD:

Machinery                                           P3,700,000

Accumulated depreciation                  1,800,000

Cash paid to Julia                                    500,000

 

The transaction lacks commercial substance.

 

How much is cost of the new asset of JULIA?

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