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Question - At the beginning of the current year, Hallmark Company exchanged an old packaging machine, which cost P1,200,000 and was 50% depreciated, for a used machine and paid a cash difference of P 160,000. The fair value of the old packaging machine was determined to be P700,000. What is the cost of the new asset acquired?
a. 600,000
b. 860,000
c. 660,000
d. 700,000
Determine the amount at which Lisali should carry inventory on the December 31, 2011, balance sheet and the amount, if any
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