An entity exchanged a truck with a carrying amount of P1,200,000…An entity exchanged a truck with a carrying amount of P1,200,000 and a fair value of P2,000,000 for truck and P250,000 cash. The cash flows from the new track are not expected to be significantly different from the cash flows of the old truck. The fair value of the truck received was P1,750,000.A delivery van was destroyed in an accident. The carrying amount was P2,500,000. The entity received an unrecorded P700,000 invoice for a new engine installed in the van and another P500,000 invoice for various repairs. The entity received P3,500,000 under an insurance policy on the van which it plans to use to replace the van?12. What is the cost of truck received in exchange?a. 1,050,000b. 1,750,000c. 950,000d. 700,000BusinessAccounting
