On January 1, 20x8, Pares Company classified its property interest under an operating lease from Allan Company, the lessor, as investment property. The asset was recognized at P 8M with an estimated remaining useful life of 15 years. The fair value of such asset is P 8.1M on December 31, 20x8. Pares adopts the cost model in valuing its investment properties subsequent to initial recognition. The investment property account of Pares, excluding the transaction described above, is composed of the following Asset CV 1/1/x8 Remaining Useful Life FV 12/31/x8 A 4.5M NA 5M B 6.55M 16 4.89M C 10.6M 20 11.050MIf Pares uses the straight line method in computing for depreciation expense, how much is the net amount of investment property to be reported in the December 31, 20x8 statement of financial position
On January 1, 20x8, Pares Company classified its property interest under an operating lease from Allan Company, the lessor, as investment property. The asset was recognized at P 8M with an estimated remaining useful life of 15 years. The fair value of such asset is P 8.1M on December 31, 20x8. Pares adopts the cost model in valuing its investment properties subsequent to initial recognition. The investment property account of Pares, excluding the transaction described above, is composed of the following
Asset CV 1/1/x8 Remaining Useful Life FV 12/31/x8
A 4.5M NA 5M
B 6.55M 16 4.89M
C 10.6M 20 11.050MIf Pares uses the
Step by step
Solved in 2 steps
