On January 1, 2020, Single Company which uses the fair value model, purchases an investment property at a cost of P50,000,000. At December 31, 2020 the market value of the property is P60,000,000. The fair market value of the property on December 31, 2021 is P55,000,000. On January 1, 2022, the property was reclassified to property, plant and equipment. At what amount should the property, plant and equipment be initially recorded? *
On January 1, 2020, Single Company which uses the fair value model, purchases an investment property at a cost of P50,000,000. At December 31, 2020 the market value of the property is P60,000,000. The fair market value of the property on December 31, 2021 is P55,000,000. On January 1, 2022, the property was reclassified to property, plant and equipment. At what amount should the property, plant and equipment be initially recorded? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Single Company which uses the fair value model, purchases an investment property at a cost of P50,000,000. At December 31, 2020 the market value of the property is P60,000,000. The fair market value of the property on December 31, 2021 is P55,000,000. On January 1, 2022, the property was reclassified to property, plant and equipment. At what amount should the property, plant and equipment be initially recorded? *
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