Monty Corp. acquired a property on September 15, 2023, for $260,000, paying $3,000 in transfer taxes and a $2,000 real estate fee. Based on the provincial assessment information, 85% of the property's value was related to the building and 15% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Monty, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $171.000 at that time, with $43,000 of this amount being for the land. Monty prepares financial statements in accordance with IFRS.

Monty Corp. acquired a property on September 15, 2023, for $260,000, paying $3,000 in transfer taxes and a $2,000 real estate fee. Based on the provincial assessment information, 85% of the property's value was related to the building and 15% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Monty, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $171.000 at that time, with $43,000 of this amount being for the land. Monty prepares financial statements in accordance with IFRS.

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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Question

Monty Corp. acquired a property on September 15, 2023, for $260,000, paying $3,000 in transfer taxes and a $2,000 real estate fee.
Based on the provincial assessment information, 85% of the property's value was related to the building and 15% to the land. It is
estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage
value. Monty, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company
should be able to sell the property for $171,000 at that time, with $43,000 of this amount being for the land. Monty prepares financial
statements in accordance with IFRS.
Show Transcribed Text
G
Building's carrying amount $
C
Assuming a December 31 year end, identify the building's carrying amount at December 31, 2024, assuming the double-declining-
balance method. (Do not round intermediate calculation and round answer to O decimal places, e.g. 5,275.)

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