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Question - On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD's non-monetary asset (machinery). The following data were made available:
JULIA:
Equipment P4,400,000
Accumulated depreciation 2,000,000
Cash received from Gerald 500,000
GERALD:
Machinery P3,700,000
Accumulated depreciation 1,800,000
Cash paid to Julia 500,000
The transaction lacks commercial substance.
Required - How much is cost of the new asset of JULIA?
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