ABC Company reported three items in its Investment Property category, with the following details: Property A Initial Cost - P5,400,000 Fair Value, 12/31/22 - P8,000,000 Fair Value, 12/31/21 - P6,400,000 Property B Initial Cost - 6,900,000 Fair Value, 12/31/22 - 4,200,000 Fair Value, 12/31/21 - 6,000,000 Property C Initial Cost - 6,600,000 Fair Value, 12/31/22 - 7,800,000 Fair Value, 12/31/21 - 7,200,000 All of them were acquired in 2021 with a useful life of 10 years. The company's policy is to use the fair value model for all its investment property. What is the net amount reported in profit or loss for the year ended December 31, 2022 relating to ABC Company’s investment property? a. P 400,000 b. P 400,000 c. P1,100,000 d. P1,890,000
ABC Company reported three items in its Investment Property category, with the following details: Property A Initial Cost - P5,400,000 Fair Value, 12/31/22 - P8,000,000 Fair Value, 12/31/21 - P6,400,000 Property B Initial Cost - 6,900,000 Fair Value, 12/31/22 - 4,200,000 Fair Value, 12/31/21 - 6,000,000 Property C Initial Cost - 6,600,000 Fair Value, 12/31/22 - 7,800,000 Fair Value, 12/31/21 - 7,200,000 All of them were acquired in 2021 with a useful life of 10 years. The company's policy is to use the fair value model for all its investment property. What is the net amount reported in profit or loss for the year ended December 31, 2022 relating to ABC Company’s investment property? a. P 400,000 b. P 400,000 c. P1,100,000 d. P1,890,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABC Company reported three items in its Investment Property category, with the following details:
Property A
Initial Cost - P5,400,000
Fair Value, 12/31/22 - P8,000,000
Fair Value, 12/31/21 - P6,400,000
Property B
Initial Cost - 6,900,000
Fair Value, 12/31/22 - 4,200,000
Fair Value, 12/31/21 - 6,000,000
Property C
Initial Cost - 6,600,000
Fair Value, 12/31/22 - 7,800,000
Fair Value, 12/31/21 - 7,200,000
All of them were acquired in 2021 with a useful life of 10 years. The company's policy is to use the fair value model for all its investment property.
What is the net amount reported in profit or loss for the year ended December 31, 2022 relating to ABC Company’s investment property?
a. P 400,000
b. P 400,000
c. P1,100,000
d. P1,890,000
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