37. Iron Company has the following property items atDecember 31, 2021:Particulars / Acquisition (CV) / FV 12/31/21Land which at the date of acquisition is notintended for any specific use in the future -P1,000,000 / P1,800,000Land held for future plant site - 2,000,000 /2,600,000Building in process of construction intended to beleased under operating lease - 8,000,000 /8,000,000Building being used by the entity for its operations- 2,5000,000 / 3,000,000Equipment being leased under operating lease -1,500,000 / 1,050,000Land and Building acquired under finance leasesbeing used by the entity as its general andadministrative headquarter - 9,200,000 / 9,900,000Assuming that the company adopted IAS 40,Investment Property using the Fair value model,what is the correct total of the investment propertyreported at December 31, 2021?P1,800,000P9,800,000P10,850,000P19,700,000

As per IAS – 40, an investment property will be a land or a building or part of a building or both…

Answered: Iron Company has the following property…

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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At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blue Spruce Corporation’s statement of financial position had the following balances: Land $309,730 Buildings—Structure 882,700 Leasehold Improvements 704,930 Equipment 844,920 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,790 plus a fee of $6,780 to the real estate agent for finding the property. Costs of $33,140 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,950. 2. Land site No. 622, which had a building on it, was acquired for $559,950. The closing statement indicated that the land’s assessed tax value was $308,680 and the building’s value was $101,830. Shortly after acquisition, the building was demolished at a cost of $27,640. A new building was constructed for $339,530 plus the following costs: Excavation fees $37,960 Architectural design…
Intangibles: Balance Sheet Presentation and Income Statement Effects Clinton Company has provided information on Intangible assets as follows: 1. A patent was purchased from Lou Company for $1,230,000 on January 1, 2018. Clinton estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of 5850,000 when Lou sold it to Clinton. 2. During 2019, a franchise was purchased from Rink Company for $550,000, In addition, 6% of revenue from the franchise must be pald to Rink. Revenue from the franchise for 2019 was $2,500,000. Clinton estimates the useful life of the franchise to be 5 years and takes a full vear's amortization in the year of purchase. 3. Clinton incurred RAD costs in 2019 as follows: Materials and equipment $147,000 Personnel 178,000 Indirect costs 69,000 $394,000 Clinton estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Clinton estimates, based on new events,…

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