Enigma Inc. owns an apartment building that was originally purchased in 2014 for $1,200,000. Enigma reports under IFRS and accounts for its investment properties using the fair value model. At the beginning of 2020, the building had a fair value of $1,600,000. On December 31, 2020, Enigma’s year end, the fair value was $1,550,000. Silvio, Enigma’s controller, is preparing the journal entry to record the apartment building at its fair value at year end. Which of the following are included in the journal entry? Question 9 options: a) No journal entry is required. b) A debit to investment property of $350,000. c) A debit to investment property of $400,000. d) A credit to investment property of $50,000.
Enigma Inc. owns an apartment building that was originally purchased in 2014 for $1,200,000. Enigma reports under IFRS and accounts for its investment properties using the fair value model. At the beginning of 2020, the building had a fair value of $1,600,000. On December 31, 2020, Enigma’s year end, the fair value was $1,550,000. Silvio, Enigma’s controller, is preparing the journal entry to record the apartment building at its fair value at year end. Which of the following are included in the journal entry? Question 9 options: a) No journal entry is required. b) A debit to investment property of $350,000. c) A debit to investment property of $400,000. d) A credit to investment property of $50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Enigma Inc. owns an apartment building that was originally purchased in 2014 for $1,200,000. Enigma reports under IFRS and accounts for its investment properties using the fair value model. At the beginning of 2020, the building had a fair value of $1,600,000. On December 31, 2020, Enigma’s year end, the fair value was $1,550,000.
Silvio, Enigma’s controller, is preparing thejournal entry to record the apartment building at its fair value at year end. Which of the following are included in the journal entry?
Silvio, Enigma’s controller, is preparing the
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