Pioneer Property Corporntion owns und holds scveral property itomsthat are held for ront to retail antitics undor opcruting leasc8.In July 2019, the entity tranaferred its marketing and otherudministrative oporations to Panig City and decided to lcase theRainbow Building spaccs under opcrating leascs. On January 2.2019, the Rainbow Building had a carrying value of P4,000,000, (withcost of P8,200,000), The fair value on July 1, 2019, determincdthrough an indcpendent appraisol, was P5,000,000. The corporationrecords annual depreciation of P200,000 on the Rainbow Building.Pioncer Property Corporation uses thc fair value modcl to account ſorits investmcnt propcrty.REQUIRED:Prepare the necessary entries in 2019 as a result of the foragoing.

The fair value method for investment in property indicates the recognition of the change in the fair…

through an indcpendent appraisal, wos P5,000,000. The corporation cost of P8,200,000). The fair value on July 1, 2019, determincd Pioneer Property Corporation owns und holds scveral propcrty items that are held for rent to rctail entitics undor opcruting leases. In July 2019, the entity tranaferred its marketing and other udministrative operations to Panig City and decided to lcasc thc Rninbow Building spaces under operating leascs. On January 2. 2019, the Rainbow Building had a carrying value of P4,000,000, (with records annual depreciation of P200,000 on the Rainbow Building. Pioncer Property Corporation uses the fair value modcl to account ſor its investmcnt propcrty. REQUIRED: Prepare the necessary entrics in 2019 as a result of the foragoing.

through an indcpendent appraisal, wos P5,000,000. The corporation cost of P8,200,000). The fair value on July 1, 2019, determincd Pioneer Property Corporation owns und holds scveral propcrty items that are held for rent to rctail entitics undor opcruting leases. In July 2019, the entity tranaferred its marketing and other udministrative operations to Panig City and decided to lcasc thc Rninbow Building spaces under operating leascs. On January 2. 2019, the Rainbow Building had a carrying value of P4,000,000, (with records annual depreciation of P200,000 on the Rainbow Building. Pioncer Property Corporation uses the fair value modcl to account ſor its investmcnt propcrty. REQUIRED: Prepare the necessary entrics in 2019 as a result of the foragoing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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