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5. PEARS Company owned three investment properties. Details of the properties are as follows: *

5. PEARS Company owned three investment properties. Details of the properties are as follows: *

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5. PEARS Company owned three investment properties. Details of the properties are as follows: * Fair Value Fair Value Initial Cost December 31, 2019 Property 1 Property 2 Property 3 P2,700,000 3,450,000 3,300,000 December 31, 2020 P 3,500,000 2,800,000 3,400,000 P 3,200,000 3,000,000 3,900,000 Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized for the year ended December 31, 2020? (If loss, put a negative sign before the numerical answer) Your answer 6. PEARS Company owned three investment properties. Details of the properties are as follows: * Fair Value Fair Value Initial Cost December 31, 2019 P3,200,000 3,000,000 3,900,000 December 31, 2020 P 3,500,000 2,800,000 3,400,000 P2,700,000 Property 1 Property 2 Property 3 3,450,000 3,300,000 Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position? Your answer
Transcribed Image Text:5. PEARS Company owned three investment properties. Details of the properties are as follows: * Fair Value Fair Value Initial Cost December 31, 2019 Property 1 Property 2 Property 3 P2,700,000 3,450,000 3,300,000 December 31, 2020 P 3,500,000 2,800,000 3,400,000 P 3,200,000 3,000,000 3,900,000 Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized for the year ended December 31, 2020? (If loss, put a negative sign before the numerical answer) Your answer 6. PEARS Company owned three investment properties. Details of the properties are as follows: * Fair Value Fair Value Initial Cost December 31, 2019 P3,200,000 3,000,000 3,900,000 December 31, 2020 P 3,500,000 2,800,000 3,400,000 P2,700,000 Property 1 Property 2 Property 3 3,450,000 3,300,000 Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position? Your answer
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