GEE Company and EYCH Inc.

decided to exchange
machineries on January 1, 2019. The machine of GEE
(Machine G) was purchased in January 1, 2016 for ₱1,000,000.
The estimated useful life of the machine is 10 years, with no
residual value. On the date of the exchange, Machine G’s fair
value is ₱680,000. EYCH’s machine (Machine H) was
purchased on January 1, 2018, for ₱2,500,000. The estimated
useful life of the machine is 5 years, with no residual value.
The fair value of Machine H on the date of exchange is
₱2,100,000. Because of the difference in the fair values,
included in the agreement is a stipulation wherein GEE shall
pay ₱1,500,000. The exchange is considered to be with
commercial substance. How much shall EYCH Inc. initially
recognize Machine G?