BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. BTS Company paid P500,000 cash in the exchange. Determine the following: (1) Initial cost of the newly acquired equipment (2) Gain or loss on exchange

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