drnal entry to record the exchange transaction. 3. Mellow Company acquired a delivery truck, making payment of P2,680,000, the payment being analyzed as follows: Price of truck 2,500,000 Charge for extra equipment 50,000 Value added tax 300,000 Insurance for one year 120,000 Motor vehicle registration 10,000 Total 2,980,000 Less: Trade in value allowed on old truck 300,000 Cash paid 2.680,000 The old truck cost P1,500,000 and has a carrying amount of P200,000, and fair value of P50,000. The value added tax is refundable or recoverable. Required: Prepare journal entry to record the exchange transaction