Direction: Answer the following questions.

DIRECTION: Use the problem to answer the requirements Prince Company and Albert Company agreed to exchange tractor trailers. Information relating to these assets is as follows: Prince Albert Original acquisition cost 1,500,000 800,000 Accumulated depreciation 700,000 720,000 Fair value on date of exchange 900,000 150,000 In accordance with the agreement, Albert will pay P750,000 in cash to Prince which is the difference in fair value. Requirements: 1. What amount should Prince Company record as cost of the asset received in exchange? 2. What amount should Albert Company record as cost of the asset received in exchange? 3. Assuming the exchange lack commercial substance, what amount should Prince Company record as cost of the asset received in exchange? 4. Assuming the exchange lack commercial substance, what amount should Albert Company record as cost of the asset received in exchange