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6. Entity A acquires an investment property for P1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, P50,000. • Legal costs of transferring title to the property, P20,000. Repairs after occupancy, P15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight line method of depreciation. How much is the carrying amount of the investment property after one year? a. 914,850 b. 968,350 C. 923,100 d. 872,100

6. Entity A acquires an investment property for P1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, P50,000. • Legal costs of transferring title to the property, P20,000. Repairs after occupancy, P15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight line method of depreciation. How much is the carrying amount of the investment property after one year? a. 914,850 b. 968,350 C. 923,100 d. 872,100

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6. Entity A acquires an investment property for P1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, P50,000. • Legal costs of transferring title to the property, P20,000. • Repairs after occupancy, P15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight line method of depreciation. How much is the carrying amount of the investment property after one year? a. 914,850 b. 968,350 с. 923,100 d. 872,100 ed the answer? Get it-with an expla 186 tutors online. Answers in as fast as 15 minutes.
Transcribed Image Text:6. Entity A acquires an investment property for P1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, P50,000. • Legal costs of transferring title to the property, P20,000. • Repairs after occupancy, P15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight line method of depreciation. How much is the carrying amount of the investment property after one year? a. 914,850 b. 968,350 с. 923,100 d. 872,100 ed the answer? Get it-with an expla 186 tutors online. Answers in as fast as 15 minutes.
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