Hazel Company owns three properties which are classified as investment properties. Details of theproperties are as follows:Initial CostFMV at 12.31.2019FMV at 12.31.2020Property 12,700,0003,200,0003,500,000Property 2Property 33,450,0003,000,0002,800,0003,300,0003,900,0003,400,000Each property was acquired in 2015 with a useful life of 50 years. The entity's accounting policy is touse the fair value model for investment properties. What is the gain or loss to be recognized in profitor loss for the year ended December 31, 2020?

As per IAS 40- Investment property, the investment can be accounted either in Cost model or Fair…

Hazel Company owns three properties which are classified as investment properties. Details of the properties are as follows: Initial Cost FMV at 12.31.2019 FMV at 12.31.2020 Property 1 Property 2 2,700,000 3,200,000 3,500,000 3,450,000 3,000,000 2,800,000 Property 3 3,300,000 3,900,000 3,400,000 Each property was acquired in 2015 with a useful life of 50 years. The entity's accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized in profit or loss for the year ended December 31, 2020?

Hazel Company owns three properties which are classified as investment properties. Details of the properties are as follows: Initial Cost FMV at 12.31.2019 FMV at 12.31.2020 Property 1 Property 2 2,700,000 3,200,000 3,500,000 3,450,000 3,000,000 2,800,000 Property 3 3,300,000 3,900,000 3,400,000 Each property was acquired in 2015 with a useful life of 50 years. The entity's accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized in profit or loss for the year ended December 31, 2020?

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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