Fair value, 12/ Fair value,12/31/2022 3,200,000 3,500,0 3,000,000 3,900,000 2,800,0 3,400,0 e of fifty years. The accounting policy is t ss to be recognized for the year ended Dec

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2022, Edson Company acquired three investment properties:
Initial cost
Fair value,12/31/2022
Fair value, 12/31/2023
Property 1
Property 2
Property 3
2,700,000
3,200,000
3,500,000
3,450,000
3,300,000
3,000,000
3,900,000
2,800,000
3,400,000
Each property had an estimated useful life of fifty years. The accounting policy is to use the fair value model for
investment property. What is the gain or loss to be recognized for the year ended December 31, 2023?
A. 250,000 loss
B. 400,000 loss
C. 300,000 gain
D. 700,000 loss
Transcribed Image Text:On January 1, 2022, Edson Company acquired three investment properties: Initial cost Fair value,12/31/2022 Fair value, 12/31/2023 Property 1 Property 2 Property 3 2,700,000 3,200,000 3,500,000 3,450,000 3,300,000 3,000,000 3,900,000 2,800,000 3,400,000 Each property had an estimated useful life of fifty years. The accounting policy is to use the fair value model for investment property. What is the gain or loss to be recognized for the year ended December 31, 2023? A. 250,000 loss B. 400,000 loss C. 300,000 gain D. 700,000 loss
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