Investment Property: Subsequent Measurement: A building is accounted as Investment Property. It has a cost of P5,000,000, useful life of 15 years and an estimated residual value of P500,000. It had fair values as follows: Year end Fair Value 1 P4,200,000 2 P4,800,000 If the entity used the cost model, compute for the following: a. Annual Depreciation Expense b. Carrying value as of the end of Year 1 c. Carrying value as of the end of Year 2 If the entity used the fair value model, compute for the following: d. Gain/(Loss) from change in fair value – Year 1 e. Gain/(Loss) from change in fair value – Year 2 f. Carrying value as of the end of Year 2
Investment Property: Subsequent Measurement: A building is accounted as Investment Property. It has a cost of P5,000,000, useful life of 15 years and an estimated residual value of P500,000. It had fair values as follows: Year end Fair Value 1 P4,200,000 2 P4,800,000 If the entity used the cost model, compute for the following: a. Annual Depreciation Expense b. Carrying value as of the end of Year 1 c. Carrying value as of the end of Year 2 If the entity used the fair value model, compute for the following: d. Gain/(Loss) from change in fair value – Year 1 e. Gain/(Loss) from change in fair value – Year 2 f. Carrying value as of the end of Year 2
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.3.4MBA
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Investment Property: Subsequent Measurement: A building is
accounted as Investment Property. It has a cost of P5,000,000,
useful life of 15 years and an estimated residual value of P500,000.
It had fair values as follows:
| Year end | Fair Value |
| 1 | P4,200,000 |
| 2 | P4,800,000 |
If the entity used the cost model, compute for the following:
a. Annual
b. Carrying value as of the end of Year 1
c. Carrying value as of the end of Year 2
If the entity used the fair value model, compute for the following:
d. Gain/(Loss) from change in fair value – Year 1
e. Gain/(Loss) from change in fair value – Year 2
f. Carrying value as of the end of Year 2
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