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Question - APPLE Company owns a tract of land for P 2,000,000 and with fair value of P 2,800,000 on the date of exchange.
MANGO Company also owns a tract of land acquired for P 3,600,000 and with fair value of P 3,800,000 on the date of exchange.
On the date of exchange, the Apple exchanged its land and paid P 1,000,000 for the land owned by Mango.
The configuration of cash flows from the land acquired is expected to be significantly different from the configuration of cash flows of the land exchanged.
At what amount should Apple record the land acquired in exchange?
a. 3,800,000
b. 3,000,000
c. 2,800,000
d. 3,200,000
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