1.)They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021 Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000 Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000 How much fair value gain should They company report in profit or loss for year 2021? 2.)He Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021 Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000 Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000 How much fair value gain should He company report in profit or loss for year 2021? * Cost model vs fair value model
1.)They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows:
Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021
Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000
Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000
How much fair value gain should They company report in profit or loss for year 2021?
2.)He Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows:
Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021
Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000
Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000
How much fair value gain should He company report in profit or loss for year 2021?
* Cost model vs fair value model
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