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Princess Company agreed with another company to exchange an old tractor trailer with a cost P1,000,000, was 40% depreciated and a fair value of P800,000 for another tractor trailer and a cash of P550,000 which is the difference in fair value. The tractor trailer received had a carrying cost of P100,000 and fair value P250,000.
Problem 1: What amount should Princess Company record as cost of the asset received in exchange?
Group of answer choices
Option 1: 250,000
Option 2: 1,350,000
Option 3: 1,400,000
Option 4: 800,000
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