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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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