Question 3 Ephrayim Oil and Gas Company abandoned a proved property late in 2020. Costs relating to the property are as follows: Proved property Wells and Equipment Exploratory dry holes Paid-up Ordinary Shares 2,150,000 1,750,000 480,000 18,500,000 Journalized the transaction:

Question 3 Ephrayim Oil and Gas Company abandoned a proved property late in 2020. Costs relating to the property are as follows: Proved property Wells and Equipment Exploratory dry holes Paid-up Ordinary Shares 2,150,000 1,750,000 480,000 18,500,000 Journalized the transaction:

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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Question 3
Ephrayim Oil and Gas Company abandoned a proved property late in 2020.
Costs relating to the property are as follows:
Proved property
Wells and Equipment
Exploratory dry holes
Paid-up Ordinary Shares
2,150,000
1,750,000
480,000
18,500,000
Journalized the transaction:

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Ephrayim Oil and Gas Company abandoned a proved property late in 2020. Costs relating to the property are as follows: Proved property Wells and Equipment Exploratory dry holes Paid-up Ordinary Shares 2,150,000 1,750,000 480,000 18,500,000 Journalized the transaction:
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MCQ3 Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation?
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Problem 11 Digimon Company owned three properties which are classified as investment properties. Details of the properties are as follows: Property 1 Property 2 Property 3 Initial cost 2,700,000 a. The cost model b. The fair value model 3,450,000 3,300,000 Fair value Dec. 31, 2022 3,200,000 3,050,000 3,850,000 Fair value Dec. 31, 2023 3,500,000 2,850,000 3,600,000 Each property was acquired at the beginning of 2017 with a useful life of 25 years. Compute for the total carrying amount to be reported as investment property on December 31, 2023 assuming the policy is to use:
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Problem 22-4 (IFRS) Dayanara Company owned three investment properties with the following details: Initial Fair value Fair value December 31, 2021 December 31, 2022 cost Property 1 Property 2 Property 3 2,700,000 3,450,000 3,300,000 3,200,000 3,000,000 3,900,000 4,000,000 2,100,000 3,600,000 Each property was acquired in 2021 with a useful life of 10 vears. The accounting policy is to use the fair value model for investment property. What amount of gain or loss should be recognized for 2022? a. 900,000 loss b. '400,000 loss c. 650,000 gain d. 300,000 loss
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