8,9,10

Use the following information for the next two questions: Holt Football Co. had a player contract with Vance that is recorded in its books at P1,200,000 on July 1, 2004. Day Football Co. had a player contract with Trent that is recorded in its books at P1,500,000 on July 1, 2004. On this date, Holt traded Vance to Day for Trent and paid a cash difference of P150,000. The fair value of the Trent contract was P1,800,000 on the exchange date. 8. If the exchange has commercial substance, the Trent contract should be recorded in Holt's books at a. P1,350,000. c. P1,650,000. b. P1,500,000. d. P1,800,000. (Adapted) 9. If the exchange lacks commercial substance, the Trent contract should be recorded in Holt's books at a. P1,350,000. c. P1,650,000. b. P1,500,000. d. P1,800,000. (Adapted) 10. Slad Company exchanged productive assets with Gil Company and, in addition, paid Gil cash of P1,000,000. The following information pertains to this exchange: Asset Fair value Carrying amount Relinquished by Gil 750,000 1,400,000 Relinquished by Slad 400,000 400,000 On Slad's books, the asset acquired should be recorded at what amount? a. 750,000 c. 1,400,000 b. 1,000,000 d. 1,750,000 (Adapted)