Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2020, had a fair value of P4,800,000. On December 31, 2020, the property was sold for net proceeds of P4,500,000. The entity used the cost model to account for the investment property. What is the gain to be recognized for 2020 regarding the disposal of the investment property? a. 900,000 b. 500,000 c. 800,000 d. 700,000

Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2020, had a fair value of P4,800,000. On December 31, 2020, the property was sold for net proceeds of P4,500,000. The entity used the cost model to account for the investment property. What is the gain to be recognized for 2020 regarding the disposal of the investment property? a. 900,000 b. 500,000 c. 800,000 d. 700,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Define collection policy
more description on key strategies
PLEASE EXPLAIN EACH POINT STEP BY STEP
Define the term understand ability.
Define the term lnvesting activities? Explain with an example?
Define benchmarking
Use the information in the following table to answer the questions below
Define Prepayments.
list and define the enhancing qualities of useful information
Read and interpret abalance sheet.
Explain an example of external events.
The following are data on three promissory notes. Determine the missing amounts. (Round answers to O decimal places, e.g. 5,275. Use 360 days for calculation.) Date of Note Terms Maturity Date Principal (a) April 1 60 days May 31 $842,400 (b) July 2 30 days August 1 100,800 (c) March 7 6 months September 7 129,600 Annual Interest Rate 5 % $ Total Interest 6 ୫୫ 252,720 $504 10 % $ 2,365,200