On January 1, 20x1, ABC Co. decided to lease out a building that was previously used as office space. The building has a historical cost of P 5,000,000 and accumulated depreciation of P 4,000,000.   ABC Co. uses the fair value model for its investment property. The building has a fair value of P 800,000 on January 1, 20x1.   What amount  shall be recognized in the statement of financial performance on January 1, 20x1

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 20x1, ABC Co. decided to lease out a building that was previously used as office space. The building has a historical cost of P 5,000,000 and accumulated depreciation of P 4,000,000.

 

ABC Co. uses the fair value model for its investment property. The building has a fair value of P 800,000 on January 1, 20x1.

 

What amount  shall be recognized in the statement of financial performance on January 1, 20x1?

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