Problem 22-4 (IFRS)Dayanara Company owned three investment properties withthe following details:InitialFair valueFair valueDecember 31, 2021 December 31, 2022costProperty 1Property 2Property 32,700,0003,450,0003,300,0003,200,0003,000,0003,900,0004,000,0002,100,0003,600,000Each property was acquired in 2021 with a useful life of 10vears. The accounting policy is to use the fair value model forinvestment property.What amount of gain or loss should be recognized for 2022?a. 900,000 lossb. '400,000 lossc. 650,000 gaind. 300,000 loss

Solution:- Given, Dayanara Company owned three investment properties Each property was acquired in…

Answered: What amount of gain or loss should be…

What amount of gain or loss should be recognized for 2022? a. 900,000 loss b. '400,000 loss c. 650,000 gain d. 300,000 loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Problem 22-4 (IFRS)
Dayanara Company owned three investment properties with
the following details:
Initial
Fair value
Fair value
December 31, 2021 December 31, 2022
cost
Property 1
Property 2
Property 3
2,700,000
3,450,000
3,300,000
3,200,000
3,000,000
3,900,000
4,000,000
2,100,000
3,600,000
Each property was acquired in 2021 with a useful life of 10
vears. The accounting policy is to use the fair value model for
investment property.
What amount of gain or loss should be recognized for 2022?
a. 900,000 loss
b. '400,000 loss
c. 650,000 gain
d. 300,000 loss

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