MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 31 and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 - P11,700,000 2020 - P11,960,000 2021 P12,000,000 2022 - P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d. MC20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d.

MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 31 and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 - P11,700,000 2020 - P11,960,000 2021 P12,000,000 2022 - P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d. MC20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d.

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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