PROBLEM 38 Barcelona Company owns the following properties on December 31, 2020: a. Land intended for sale - P1,000,000 b. Building, in the process of construction for rentals - 3,000,000 c. Equipment for lease under operating lease - 500,000 d. Land held for undetermined use - 2,500,000 e. Building intended for leased out under finance lease - 2,800,000 f. Land held for future factory site - 1,200,000 g. Building use for rentals. A small part of the building is used as a satellite administrative office - 4,000,000 h. Hotel building on which Barcelona Company provides monthly maintenance services - 3,500,000 Requirements: 1. How do you classify each of the items mentioned above? 2. Compute the investment property on December 31, 2020
PROBLEM 38
Barcelona Company owns the following properties on December 31, 2020:
a. Land intended for sale - P1,000,000
b. Building, in the process of construction for rentals - 3,000,000
c. Equipment for lease under operating lease - 500,000
d. Land held for undetermined use - 2,500,000
e. Building intended for leased out under finance lease - 2,800,000
f. Land held for future factory site - 1,200,000
g. Building use for rentals. A small part of the building
is used as a satellite administrative office - 4,000,000
h. Hotel building on which Barcelona Company provides
monthly maintenance services - 3,500,000
Requirements:
1. How do you classify each of the items mentioned above?
2. Compute the investment property on December 31, 2020.
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