He Company owns land and building classified as investment property. The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost Land ---- P 10,000,000 - FV Dec. 31, 2020 P14,000,000 9,000,000 FV Dec. 31, 2021 --P15,500,000 9,500,000 FV Dec. 31, 2021 P 17,000,000 10,000,000 Building - 20,000,000 --- How much fair value gain should He company report in profit or loss for year 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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He Company owns land and building classified as investment property. The land and building is
being leased out under operating leases. The company uses the fair value model for all its other
investment property. Data relating to the land and building follows:
Cost
Land
P 10,000,000 -
FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021
P14,000,000
P 17,000,000
9,000,000
‒‒‒‒
-P15,500,000 ----
‒‒‒‒‒‒
Building - 20,000,000 ---
9,500,000
-----
10,000,000
How much fair value gain should He company report in profit or loss for year 2021?
Transcribed Image Text:He Company owns land and building classified as investment property. The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost Land P 10,000,000 - FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021 P14,000,000 P 17,000,000 9,000,000 ‒‒‒‒ -P15,500,000 ---- ‒‒‒‒‒‒ Building - 20,000,000 --- 9,500,000 ----- 10,000,000 How much fair value gain should He company report in profit or loss for year 2021?
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