ABC Compant purchased an investment property on July 1, 2016 for P4,200,000. The property had a useful life of 35 years and on December 31, 2021 had a fair valye of P3,000,000. On December 31, 2021, the property was sold for net proceeds of P3,100,000. The entity used the cost model to account for the investment property. How much is the gain (loss) to be recognized for the year ended December 31, 2021 regarding the disposal of the property.   a. (540,000) b. 440,000 c. (100,000) d. (440,000)

Q: Momo Company has a single investment property which had originally cost P2,320,000 on January 1,…

A: Valuation of Investment Assets According to PAS 40 the valuation of the investment assets mainly…

Q: XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment…

A: Using fair value method, the investment property is remeasure at the end of accounting period. Using…

Q: by BEE last October of 2015 for $1,750,000, and the building was constructed on February of 2016 for…

A: The right answer is option A. Land - $2,200,000; Building - $3,300,000

Q: The Lancer Company has a single investment property, which had original cost of P580,000 on January…

A: Under the fair value model, investment property is remeasured at the end of each reporting period.…

Q: Chaz Corporation has taxable income in 2020 of $368,000 for purposes of computing the §179 expense…

A: Taxable Income:- When an individual earns income from the resources available, then it has to pay…

Q: cost model. What amount should be carried in the statement of financial position as investment…

A: Definition: Cost model: It is an accounting policy for reporting the carrying value of the property…

Q: Bili Company acquired a building on January 1, 2019 for P 9,000,000. At that date the building had a…

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

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: Rover Inc. purchased land for $118,000,000 in 2011. At December 31, 2020, an appraisal determined…

A: "Since you have asked multiple questions, we will solve first question for you. if you want any…

Q: Chaz Corporation has taxable income in 2020 of $396,000 for purposes of computing the §179 expense…

A: Depreciation expense can be defined as a non-cash expenditure which represents the normal wear &…

Q: On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line…

A: Deferred tax:   Deferred taxes are taxes that will be paid in future period.   Deferred tax is a…

Q: Lopez acquired a building on June 1 2014 for 1,000,000. Compute the depreciation deduction assuming…

A: Given that, Lopez acquired a building on June 1 2014 for 1,000,000   To calculate - Lopez's cost…

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: What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1,…

A: Depreciation is the reduction of the fair value of the asset over a period of time. It is the…

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

A: Answer:-  Carrying value meaning:- The carrying value of a company's assets is a measure of its…

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

A: Formula: Depreciation per year = Asset value / Useful life years

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: The original cost of the properties was P9,000,000 each when they were  acquired on January 1, 2015.…

A: The depreciation on investment property is recognized at the fair value over the remaining useful…

Q: Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction…

A: The rate of depreciation will be 3.636% on the total value of the asset on the straight-line method.…

Q: At the beginning of 2015, Pitman Co. purchased as asset for $1,200,000 with an estimated useful life…

A: Straight line depreciation=Cost-Salvage valueUseful life=$1,200,000-$200,0005=$200,000

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: On January 1, 2023, Stigman Company purchased building at a cost of P10,000,000 with a 10-year…

A: Accumulated Depreciation=CostUseful Life×2 years=P 10,000,00010×2 Years=P 2,000,000

Q: Han, Inc. owns a building purchased on January 1, 2016 for P100 million. The building was used as…

A: answerAs per IFRS /IAS An organisation shall transfer a property to, from investment property only…

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

A:

Q: POPOY Co. purchased 40% of BASHA Corp. on April 1, 2022, for P500,000 when BASHA's net assets has a…

A: Carrying value of Investment in an associate is calculated as the cost of acquisition +…

Q: ABC Ltd., a private company, can report in accordance with either ASPE or IFRS. On January 1, Year…

A: Asset Valuation Provision: As per the Accounting Standards of Private Enterprises- Canada, does not…

Q: Rhino Company, a real estate entity, had a building with a The building was used as offices of the…

A: Given information, Carrying amount of building =P20,000,000 Fair value of building =P35,000,000…

Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $10,200,000. Based on…

A: The question is related to Depreciation Accounting.  Depreciation reduces the value of the assets…

Q: On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The solution for the above mentioned question is given in the following steps for your reference.

Q: Jessie Company purchased an investment property on January 1, 2020 at a cost of P2,200,000. The…

A: Given information, Cost of the property =P2,200,000 Fair value of the property =P3,000,000 Useful…

Q: In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…

A: The question is based on the concept of business transaction analysis.

Q: in November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for…

A:

Q: DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…

A:

Q: PEARS Company owned three investment properties. Details of the properties are in the table:  Each…

A: Investment property consists of land, building, or both that is held in order to earn rentals or for…

Q: On January, 2021, Joshtin Company owned an investment property which had an original cost of…

A: Fair value is the market value of net present value of the investment or property. Any change in…

Q: On July 16, 2020, Logan acquires land and a building for $500,000 to use in his sole proprietorship.…

A: The adjusted basis for land and building at the acquisition date is Land : $100,000 Building :…

Q: On 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has - year useful…

A: Income tax:  It is the amount a person is liable to pay on the earned amount in an accounting year.…

Q: haz Corporation has taxable income in 2021 of $312,000 for purposes of computing the §179 expense…

A: Capitalized Cost: A capitalized cost is a cost added to the expense premise of a proper resource on…

Q: . In 2018, Delta Corporation bought a condominium unit on installment for the use of its executive.…

A: GIVEN    In 2018, Delta Corporation bought a condominium unit on installment for the use of its…

Q: The Salient company uses the revaluation model for its building. It acquired a building on January…

A: Revaluation of fixed means to adjust the carrying value of assets with changes in fair market value.

Q: Booster Co purchased a building on 1 January 2010 for P1,250,000. At acquisition, the useful life of…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,250,000-0) /…

Q: Renata Corporation purchased equipment in 2019 for $366,400 and has taken $164,880 of regular MACRS…

A: Equipment Book value =  Purchase price - MACRS depreciation = $366, 400 - $164, 880 =$201, 520

Q: On September 1, 2020, Flint Corporation acquired Tamarisk Enterprises for a cash payment of…

A: Goodwill is an intangible asset of the company which arises when the payment made for acquiring the…

Q: Keil Company has a single investment property which had an original cost of P5,800,000 on January 1,…

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

Q: The Salient company uses the revaluation model for its building. It acquired a building on January…

A: 1. 2018, and 2019, depreciation expenses = (450,000 - 50,000)/ 25 = $16,000 per year Accumulated…

Q: Ben Company purchased an investment property on January 1, 2020 at a cost of P250.000. The property…

A: The investment property refers to the asset that is not used in production and providing goods and…