On January 1, 2022, Edson Company acquired three investment properties:Initial costFair value,12/31/2022Fair value, 12/31/2023Property 1Property 2Property 32,700,0003,200,0003,500,0003,450,0003,300,0003,000,0003,900,0002,800,0003,400,000Each property had an estimated useful life of fifty years. The accounting policy is to use the fair value model forinvestment property. What is the gain or loss to be recognized for the year ended December 31, 2023?A. 250,000 lossB. 400,000 lossC. 300,000 gainD. 700,000 loss

Fair value is the market value of the property at the end of the accounting year . As IAS 40 ,…

Answered: Fair value, 12/ Fair value,12/31/2022…

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

Problem 1Q

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Question

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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