Problem 23-14 (LAA) Problem 23-16 (LAA) Corner Company puchased a van with a list price of P3,000,000. The dealer granted a 15%% reduction in list price at the beginning of current year, Allison Company purchased and an additional 10% cash discount on the net price if new machine on a deferred payment basis. payment is made in 30 days. A down payment of P200,000 was made and four annual Irrecoverable taxes amounted to P40,000 and the entity paid installments of P600,000 each are to be made every mar end. The cash equivalent price of the machine was in extra P30,000 to have a special horn installed. P2 8001000. What amount should be recorded as initial cost of the van? Dee to an employee strike, the entity could not install the 2,650,000 machine immediately and thus incurred P30,090 of storage wet. Cost of installation excluding the storage cont amounted 2,495.500 2,365,000 P50,000. 2,325,000 What is the initial amount to be capitalized as the cost of the machine? Problem 23-18 (AICPA Adapted) 2,300,000 At the beginning of the current year, Hallmark Cox 2,380,000 exchanged an old packaging machine, which cost Plays 2,410,000 and was 50% depreciated, for a used machine and paid as 2,600,000 difference of P160,000. The fair value of the old packaging machine was determin problem 23-20 (AICPA Adapted) be P700,000 maisble Company exchanged a truck with a carrying acount 1. What is the cost of the new asset acquired? "PL. 900,000 and a fair value of P2,000,000 for a truck and P1500,000. 290.000 cash. The fair value of the truck received was A. 700,000 b. 860,000 the cash flows from the new truck are not expected to be C. 660,000 minicantly different from the cash flows of the old truck. 600,000 I At what amount should the truck received in the 2. What is the gain on exchange? exchange be recorded? a. 540,000 2,000,000 b. 100,000 b. 1,400,000 C. 60,000 . 1,000,000 1,800,000 0 What is the gain on exchange? Problem 23-22 (AICPA Adapted) . 800,000 fola Company and Zaro Company are fuel oil distribute 600,000 To facilitate the delivery of oil to their customers, 200,000 Company and Zaro Company exchanged ownership of 154 barrels of oil without physically moving the oil Problem 29-24 Multiple choice (AA Tola Company paid Zaro Company P300,000 to compete A nonmonetary exchange in recognized at fair value of ament exchanged unless for a difference in the grade of oil. change has commercial substance b Fair value is not determinable e. The assets are similar in nature The configuration of cash flows from the asset received d. The assets are dissimilar not expected to be significantly different from configuration of the cash flows of the asset exchanged. 2. In an exchange with commercial substance a Gain or loss is recognized entirely. Gain or loss is not recognized. On the date of exchange, cost and market value of the e. Only gain should be recognized. were as follows: Only less should be recognized. Yola Company J. The cost of property, plant and equipment noquired is Zaro Company exchange is measured at the Cost 1,000,000 1,400,060 Market value a. Fair value of the asset given plus cash payment 1,200,000 1,500,060 b. Fair value of the asset received plus cash payment Carrying amount of the asset given plus cash payment 1. What is initial measurement of the oil inventory receivi Carrying amount of the asset received plus the cut payment. in exchange by Yola Company? d. Which exchange has commercial substance? 1,000,000 b. 1.200,000 Exchange of assets with no difference in future esh flows. C. 1,300,000 b. Exchange by entities in the same line of business d. 1,600,000 d Exchange of assets with difference in future cash for Exchange of assets that causes the entities to remains essentially the same economic position. 2. What is the initial measurement of the oil inventa 5. For a nonmonetary exchange, the configuration of cash flow received in exchange by Zaro Company? includes which of the following? B. 1,400,000 b. 1,500,000 loan a. The implicit rate, maturity date of loan and amount b. C. 1,100,000 The risk, timing and amount of cas The entity-specific value of the t of cash flows of the aspeta 1,200,000 of the asset d. The estimated present value of the assets exchanged
