Corner Company purchased a van with a list price of P3,000,000. The dealer granted a 15% reduction in list price and an additional 10% cash discount on the net price if payment is made in 30 days. Irrecoverable taxes amounted to P40,000, and the entity paid an extra P30,000 to install a unique horn. What amount should be recorded as the initial cost of the van? a. 2,550,000 b. 2,335,000 c. 2,365,000 d. 2,325,000 At the beginning of the current year, Hallmark Company exchanged an old packaging machine, which cost P1,200,000 and was 50% depreciated, for a used machine and paid a cash difference of P160,000. The fair value of the old packaging machine was determined to be P700,000. What is the cost of the new asset acquired? a. 700,000 b. 860,000 c. 660,000 d. 600,000