Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P400,000, equal to recoverable amount. If Wah Co. decides to transfer the investment property to owner-occupied property, the transfer will most likely result to the reporting of which of the following in Wah's statement of profit or loss? c. P200,000 unrealized loss d. P600,000 loss on transfer a. P200,000 loss on transfer b. P200,000 impairment loss

Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P400,000, equal to recoverable amount. If Wah Co. decides to transfer the investment property to owner-occupied property, the transfer will most likely result to the reporting of which of the following in Wah's statement of profit or loss? c. P200,000 unrealized loss d. P600,000 loss on transfer a. P200,000 loss on transfer b. P200,000 impairment loss

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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