PROBLEM #8 EE Company plans to dispose of an equipment in one of several ways. The equipment has a cost of P2,400,000 and the accumulated depreciation amounted to P840,000. The current fair value of such equipment is P1,800,000. Compute for the gain/loss on the following independent exchange transactions: (Specify whether your answer is a gain or loss.) a) The equipment is exchanged for a used equipment also valued at P1,800,000. The cash flows of the asset given and the cash flows of the asset received do not differ. b) The equipment is exchanged for a used equipment valued at P2,400,000. EE Company pays P600,000 in the exchange. c) Assuming that the fair value of the equipment disposed of cannot be determined. The company exchanged it for a used equipment having a cost of P2,900,000 and fair value of P1,000,000. d) The equipment is exchanged for a vacant lot whose fair value is P2,040,000