The following information relates to Absolute Company for the year 2020: Determine the accounts and amounts taken to profit or loss relating to the investment property. Land Held as Investment Property (at cost) 5,000,000 Fair value at January 1, 2020 6,000,000 Fair value at December 31, 2020 6,800,000 Estimated disposal cost 300,000 Building Held as Investment Property Construction was completed at January 1, 2020 at a total cost of 20,000,000 Estimated useful life with no residual value 40 years Fair value at January 1, 2020 19,000,000 Fair value at December 31, 2020 20,000,000 Estimated disposal cost 500,000 Rent revenue recognized during 2020 3,000,000 Compensation paid to personnel for administrative and security 200,000 Real property taxes applicable to 2020 120,000 Costs of maintenance paid to an outsourced company 340,000
The following information relates to Absolute Company for the year 2020:
Determine the accounts and amounts taken to profit or loss relating to the investment property.
|
Land Held as Investment Property (at cost) |
5,000,000 |
|
Fair value at January 1, 2020 |
6,000,000 |
|
Fair value at December 31, 2020 |
6,800,000 |
|
Estimated disposal cost |
300,000 |
|
|
|
|
Building Held as Investment Property |
|
|
Construction was completed at January 1, 2020 at a total cost of |
20,000,000 |
|
Estimated useful life with no residual value |
40 years |
|
Fair value at January 1, 2020 |
19,000,000 |
|
Fair value at December 31, 2020 |
20,000,000 |
|
Estimated disposal cost |
500,000 |
|
|
|
|
Rent revenue recognized during 2020 |
3,000,000 |
|
Compensation paid to personnel for administrative and security |
200,000 |
|
Real property taxes applicable to 2020 |
120,000 |
|
Costs of maintenance paid to an outsourced company |
340,000 |
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