FAITH Inc and HOPE Co. have an exchange with no commercial substance. The asset given up by FAITH Inc has a carrying amount of P12,000 and a fair market value of P15,000. The asset given up by HOPE Co. has a carrying amount of P20,000 and a fair market value of P19,000. P4,000 is received by HOPE Co. What amount should FAITH Inc record for the asset received?
FAITH Inc and HOPE Co. have an exchange with no commercial substance. The asset given up by FAITH Inc has a carrying amount of P12,000 and a fair market value of P15,000. The asset given up by HOPE Co. has a carrying amount of P20,000 and a fair market value of P19,000. P4,000 is received by HOPE Co. What amount should FAITH Inc record for the asset received?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![FAITH Inc and HOPE Co. have an exchange with no commercial substance.
The asset given up by FAITH Inc has a carrying amount of P12,000 and a fair
market value of P15,000. The asset given up by HOPE Co. has a carrying
amount of P20,000 and a fair market value of P19,000. P4,000 is received by
HOPE Co. What amount should FAITH Inc record for the asset received?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb189f980-ed69-4ac0-9267-f189f000985d%2F88ac1f63-9c86-4767-85bc-bf4b0851e1a4%2Fohf07rq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:FAITH Inc and HOPE Co. have an exchange with no commercial substance.
The asset given up by FAITH Inc has a carrying amount of P12,000 and a fair
market value of P15,000. The asset given up by HOPE Co. has a carrying
amount of P20,000 and a fair market value of P19,000. P4,000 is received by
HOPE Co. What amount should FAITH Inc record for the asset received?
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