On January 1, 2018 ALTA S.A. acquires a machinery from BAJA S.A. in exchange for a note that
does not accrue interest for a value of ¢ 900,000, whose maturity date is December 31, 2020.
The fair value of the machinery is ¢ 800,000. The machinery acquired was assigned a useful life
of 4 years from the month of purchase, with no residual value and is depreciated using the
straight-line method. The company makes annual closings on December 31.
REQUIRED:
1- Complete an amortization table
2- Complete the respective entries for the year ended December 31, 2018 regarding the
document payable and the machinery