11,12,13

11. Jazz Company purchased land with fair value of P240,000. Its book value in the accounts of the seller was P130,500. In exchange for the land, Jazz issued 20,000 shares of its common stock, par P10, with an estimated market value of P14 per share. Jazz stock is not traded on an established stock exchange. What amount should Jazz record as the cost of the land? a. P130,500 c. P240,000 b. P200,000 d. P280,000 (Adapted) Use the following information for the next two questions: Equipment that cost P55,000 and has accumulated depreciation of P25,000 is exchanged for similar equipment with a fair value of P40,000 and P10,000 cash is received. 12. The gain to be recognized from the exchange is a. P4,000 gain. c. P15,000 gain. b. P5,000 gain. d. P20,000 gain. (Adapted) 13. The new equipment should be recorded at a. P40,000. c. P25,000. b. P30,000. d. P24,000. (Adapted)