PROBLEM 20-6: Subsequent measurement: Cost model vs Fair value model Blatche Company completed the construction of a shopping mall at the end o 2014 for a total cost of P200 million. The mall has an estimated economic lite 25 years. The mall was constructed for the purpose of earning rentals by letts out space in the shopping mall to tenants. An independent valuation expert was used by the company to fair value t shopping mall on an annual basis. According to the fair valuation expert, the l P230 million, respectively.
PROBLEM 20-6: Subsequent measurement: Cost model vs Fair value model Blatche Company completed the construction of a shopping mall at the end o 2014 for a total cost of P200 million. The mall has an estimated economic lite 25 years. The mall was constructed for the purpose of earning rentals by letts out space in the shopping mall to tenants. An independent valuation expert was used by the company to fair value t shopping mall on an annual basis. According to the fair valuation expert, the l P230 million, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 6. PLEASE ANSWER AND SHOW SOLUTION
Transcribed Image Text:PROBLEM 20-6: Subsequent measurement: Cost model vs Fair value model
Blatche Company completed the construction of a shopping mall at the ena a
2014 for a total cost of P200 million. The mall has an estimated economic kte ca
25 years. The mall was constructed for the purpose of earning rentals by Rus
out space in the shopping mall to tenants.
An independent valuation expert was used by the company to fair value
shopping mall on an annual basis. According to the fair valuation expert, the
P230 million, respectively.
Transcribed Image Text:5. If Blatche Company opted to use the fair value model to measure the
shopping mall, how much is the carrying amount of the shopping mall to be
reported in its statement of financial position as of December 31, 2016?
P230,000,000
b. P192,000,000
c. P200,000,000
d. P184,000,000
a.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education