Beck Company and Train Corporation exchange equipment. Relevant information are as follows:

	Beck	Train
Equipment	2,000,000	2,500,000
Accumulated depreciation	1,125,000	1,687,500
Fair value	750,000	1,000,000
Cash payment/(received)	250,000	(250,000)

Beck Company also traded an old equipment with a dealer for a newer model. Relevant information are as follows: Old equipment: Cost P1,400,000 Accumulated depreciation 1,000,000 Fair value 350,000 Trade in value 500,000 New equipment: List price P2,000,000 Trade in value of old equipment (500,000) Cash payment P1,500,000 Required 1. Prepare journal entries related to the exchange using the following assumptions: a) Fair value approach b) Trade in value approach