The Lancer Company has a single investment property, which had original cost of P580,000 on January 1, 2020. At December 31, 2022, its fair value was P600.000 and at  December 31, 2023, it had a fair value of P590,000. On acquisition, the property had a useful life of 40 years. According to IAS 40 Investment Property, what should be the expense recognized in Lancer's profit or loss for the year ending December 31, 2023 under each of the fair

Q: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: On January 1, 2020, MANNCorp. has an investment property that was carried at fair value with a…

A: 1 There will be no journal entry for these transfers but changes in disclosures would be made

Q: Summer Co. uses the cost model to account for its property, plant and equipment (PPE).  The PPE was…

A: A Cost of PPE on Jan 1,2020  $      575,000 B Useful life(years)                    14 C…

Q: esidual value. The asset is accounted for under t ut every three years. On December 31, 2025, th air…

A: Journal entries :A Journal Entry is a record of the business transactions in the accounting books of…

Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of year 2019, Itlog company acquired property at cost = $2000000 Useful life of…

Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: 1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be…

A: Carrying amount is the amount at which an asset is recognised after deducting any accumulated…

Q: What is the amount of revaluation surplus reported in equity on December 31, 2022?

A: Answer: To calculate the amount of revaluation surplus reported in equity on December 31, 2022, we…

Q: Bergs Company owns a building purchased on January 1, 2018, for 50 million.  The building was used…

A: As per IAS 40 Investment property, An investment property is to be measured at fair value Book…

Q: Choose the amount of loss and the type of loss that shall be recognized on the above transaction. P…

A: An impairment loss is the recognition of the reduction in the value of the asset due to changes in…

Q: Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The…

A: A recognized gain occurs when an investment or asset is sold for a price that is larger than what…

Q: On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company.…

A: If the asset is acquired in exchange of another assets, then the cost value of acquired asset…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: Them Company has a single investment property, which had original cost of P5,800,000 and estimated…

A: In case of Fair value model, assets is measured at fair value and any change in fair value during…

Q: by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD…

A: Depreciation expense refers to the reduction in the cost of a fixed asset due to its use or passage…

Q: Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the…

A: As per IFRS 5, Non current assets held for sale and discontinued operations,  Specifies that an…

Q: HMI Building Ltd. (HBL) purchased a piece of vacant land on March 1, 2020, for $345,000, and…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On January 3, 2018, Honest company acquired an item of property, plant and equipment at a cost of…

A: Asset will be reclassified as held for sale will be valued at lower of following 1) carrying value…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: VALUE OF PROPERTY IMMEDIATELY BEFORE THE CLASSIFICATION AS HELD FOR SALE AS ON 31ST DEC, 2022…

Q: investment property

A: We know that as per IAS 40 investment property can be valued at cost or Fair value . Investment…

Q: On January 1, 2015, MARS Inc. acquired a real property consisting of a land with a building for…

A:

Q: Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The…

A: A revaluation excess is a type of equity account that records any gains in the value of capital…

Q: On January 1, 2022, Martinez Corporation acquires a building at a cost of $195,000. The building is…

A: Commercial organizations used journal entries to record their financial transactions in their…

Q: An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property…

A: As per IAS 40 "Investment property", for recording investment property in books of account, one of…

Q: 38. Pink Company purchased a machine on January 1, 2019 for P6,000,000. At the date of acquisition,…

A: Solution: Initial annual depreciation = Cost of machine / useful life = P6,000,000 / 6 = P1,000,000…

Q: Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On…

A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying value of asset is…

Q: PEARS Company owned three investment properties. Details of the properties are as follows: (See…

A: Under the fair valuation model, all of the investment has been valued at fair value as on every…

Q: Questions 9 through 12 are based on the following information: On January 1, 2021, Bida-bida Corp.…

A: Lets understand the basics. Impairement is happen when carrying value of asset is less than…

Q: PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000.…

A: There are two methods for subsequent accounting of the fixed assets; which are, Cost model and the…

Q: 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation…

A:

Q: On April 30, 2019, Min

A:

Q: Red Company acquired a building on January 1, 2021 for P20,000,000.  At that date, the building had…

A: Investment property: It implies to a property that is purchased or bought by the investor for the…

Q: 1) On January 1, 2020, Harbor Company purchased land and building at a single cost of P20,000,000.…

A: Fixed assets are those assets which are being held by business for longer period of time. All costs…

Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Cake, Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being…

A: The revaluation model is the model used in the recognition of fixed assets in financials. In this…

Q: On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and…

A: Impairment Loss on Held for sale Non current Assets According to PFRS 5 there are some rules and…

Q: On January 1, 2023, Blossom Ltd. acquires a building at a cost of $200,000. The building is expected…

A: The revaluation is the accounting process under which the business entity determines the market…

Q: Johnson Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a…

A: Current problem is related to the concept of impairment of asset value. Every entity on each balance…