An entity owns two investment properties, X and Y, the fair values of which are: December 31, 2026 December 31, 2027 15,000,000 20,000,000 10,000,000 8,000,000 Property X Property Y The original cost of the properties was P 9 million each when they were acquired on January 1, 2025. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties. Compute for the total amount of gain recognized in the December 31, 2027 statement of profit or loss?

An entity owns two investment properties, X and Y, the fair values of which are: December 31, 2026 December 31, 2027 15,000,000 20,000,000 10,000,000 8,000,000 Property X Property Y The original cost of the properties was P 9 million each when they were acquired on January 1, 2025. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties. Compute for the total amount of gain recognized in the December 31, 2027 statement of profit or loss?

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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Question

An entity owns two investment properties, X and Y, the fair values of which are:
December 31, 2026
December 31, 2027
20,000,000
8,000,000
Property X
Property Y
15,000,000
10,000,000
The original cost of the properties was P 9 million each when they were acquired on January 1, 2025.
Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties.
Compute for the total amount of gain recognized in the December 31, 2027 statement of profit or loss?

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