On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALDs non-monetary asset (machinery). The following data were made available:

JULIA:

Equipment P4,400,000

Accumulated depreciation 2,000,000

Cash received from Gerald 500,000

GERALD:

Machinery P3,700,000

Accumulated depreciation 1,800,000

Cash paid to Julia 500,000

The transaction lacks commercial substance.

How much is cost of the new asset of JULIA?

answer fast