What amount should teen report as a gain

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Question: Teen Company exchanged a delivery van and Php 50,000 cash for a newer van owned by Quest Corporation. The following data relate to the values of the van on the date of exchange: Carrying Amount Fair Value Teen Company Php 300,000 Php 450,000 Quest Corporation 400,000 500,000 Immediately after the exchange, Teen Company determined that the cash flows of the van received differ from the cash flows of the van transferred.

1. What is the cost of the new asset acquired as basis for recording in the books of Teen Company?

2. What amount should Teen report as a gain on exchange of the vans?

Reference no: EM132759981

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