Eragon Company and its subsidiaries own the following properties at year-end: Land held by Eragon for undetermined use 5,000,000 A vacant building owned by Eragon and to be leased out under an operating lease 3,000,000 Property held by a subsidiary of Eragon, a real estate firm, in the ordinary course of business 2,000,000 Property held by Eragon for use in production 4,000,000 Building owned by a subsidiary of Eragon and for which the subsidiary provides security and maintenance services to the lessees 1,500,000 Land leased by Eragon to a subsidiary under an operating lease 2,500,000 Property under construction for use as investment property 6,000,000 Land held for future factory site 3,500,000 Machinery leased out by Eragon to an unrelated party under an operating lease 1,000,000 4. What is the total investment property that should be reported in the consolidated statement of financial position of the parent and its subsidiaries? a. 12,000,000 b. 15,500,000 c. 10,500,000 d. 9,500,000 5. What total amount should be included in property, plant and equipment in the consolidated statement of financial position? a. 11,000,000 b. 13,000,000 c. 10,500,000 d. 8,500,000

Eragon Company and its subsidiaries own the following properties at year-end: Land held by Eragon for undetermined use 5,000,000 A vacant building owned by Eragon and to be leased out under an operating lease 3,000,000 Property held by a subsidiary of Eragon, a real estate firm, in the ordinary course of business 2,000,000 Property held by Eragon for use in production 4,000,000 Building owned by a subsidiary of Eragon and for which the subsidiary provides security and maintenance services to the lessees 1,500,000 Land leased by Eragon to a subsidiary under an operating lease 2,500,000 Property under construction for use as investment property 6,000,000 Land held for future factory site 3,500,000 Machinery leased out by Eragon to an unrelated party under an operating lease 1,000,000 4. What is the total investment property that should be reported in the consolidated statement of financial position of the parent and its subsidiaries? a. 12,000,000 b. 15,500,000 c. 10,500,000 d. 9,500,000 5. What total amount should be included in property, plant and equipment in the consolidated statement of financial position? a. 11,000,000 b. 13,000,000 c. 10,500,000 d. 8,500,000

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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