River Company plans to dispose of an equipment in one of several ways: Equipment - old Accumulated depreciation Fair value 2,000,000 700,000 1,500,000 1. The equipment is exchanged for a vacant lot whose fair value is P1,700,000. 2. The equipment is exchanged for a used equipment also valued at P1,500,000. The cash flows of the asset given and the cash flows of the asset received do not differ. 3. The equipment is exchanged for a used equipment valued at P2,000,000. River Company pays P500,000 in the exchange. Required: 1. Compute the amount that will be capitalized as the cost of the new asset in each of the above in de pendent exchange assumptions. (3 answers, 1 each assumption) 2. Prepare the journal entry for each of the above exchange transactions (3 journal entries)