On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d P150.000

On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d P150.000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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