Beched Company and its subsidiaries provided the following properties owned by the group: Land held by Beched for undetermined future use Vacant building, owned by Beched to be leased out under an operating lease Property held by Beched for use in production Property held by a subsidiary of Beched, a real estate firm, in the ordinary course of its business Building owned by subsidiary of Beched and for which the subsidiary Provides security and maintenance services to the lessees Land leased by Beched to a subsidiary under an operating lease Equipment leased by Beched to unrelated party under an operating lease Building under construction by Beched for use as investment property 1,000,000 2,000,000 4,000,000 3,000,000 2,500,000 1,500,000 500,000 3,500,000 In the consolidated statement of financial position of Beched Company and its subsidiaries, what total amount should be shown as investment property?

Beched Company and its subsidiaries provided the following properties owned by the group: Land held by Beched for undetermined future use Vacant building, owned by Beched to be leased out under an operating lease Property held by Beched for use in production Property held by a subsidiary of Beched, a real estate firm, in the ordinary course of its business Building owned by subsidiary of Beched and for which the subsidiary Provides security and maintenance services to the lessees Land leased by Beched to a subsidiary under an operating lease Equipment leased by Beched to unrelated party under an operating lease Building under construction by Beched for use as investment property 1,000,000 2,000,000 4,000,000 3,000,000 2,500,000 1,500,000 500,000 3,500,000 In the consolidated statement of financial position of Beched Company and its subsidiaries, what total amount should be shown as investment property?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

See similar textbooks

Similar questions

Dayanara Company owns three properties which are classified as investment properties. Details of the properties are as follows: Initial Cost Fair Value 12/31/2019 Fair Value 12/31/2020 Property 1 2,700,000 3,200,000 3,500,000 Property 2 3,450,000 3,000,000 2,280,000 Property 3 3,300,000 3,900,000 3,400,000 Each property had an estimated useful life of 25 years. The entity’s accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented for the year ended December 31,2020 in the statement of financial position?
Panther Company is acquiring the net assets of Sharon Company. The book and fair values of Sharon’s accounts are as follows: Accounts Book FairCurrent Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $120,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 80,000Building and Equipment . . . . . . . . . . . . . . . . . . . . . . . 300,000 400,000Customer List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 20,000Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100,000 100,000What values will be assigned to current assets, land, building and equipment, the customer list, liabilities, goodwill, and gain under each of the following acquisition price scenarios?a. $800,000b. $450,000
MMM Company and its subsidiaries own the following properties at year end: Land held by MMM for undetermined use = 5,000,000; A vacant building owned by MMM and to be leased out under an operating lease = 3,000,000; Property held by a subsidiary of MMM, a real estate firm in the ordinary course of business = 2,000,000; Property held by MMM for use in production = 4,000,000; Building owned by a subsidiary of MMM and for which the subsidiary provides security and maintenance services to the lessees = 1,500,000; Land leased by MMM to a subsidiary under an operating lease = 2,500,000; Property under construction for use as investment property = 6,000,000; Land held for future factory site = 3,500,000; Machinery leased out by MMM to an unrelated party under an operating lease = 1,000,000. What total amount should be considered as owner-occupied property and included in property, plant and equipment in the consolidated statement of financial position?
KK owns the following properties as at 31st December 2017: Property: Fair value (GH¢) Land with future use undetermined 3,200,000 Factory rented to KK’s subsidiary under an operating lease 2,400,000 10 floor office building (fair value is equal per floor) with 3 floors used as the subsidiary's head office and seven floors rented to third parties under an operating lease. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK's accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model. Required: In accordance with IAS 40 Investment Property calculate the carrying amount to be recognized as investment property in KK's consolidated financial statements as at 31 December 2017. 1
Sisig Corp. has the following information in its notes to the financial statements:• Land held for long term capital appreciation- P1,000,000• Land held for a currently determined future use- P300,000• Property that is being constructed or developed for future use as an investment property- P1,500,000• Investment property being redeveloped- P2,000,000• Building owned and leased out under operating lease- P450,000• Owner-occupied property- P3,200,000• Owner-managed hotel- P2,300,000How much is the Investment Property to be presented in the statement of financial position? A. P4,950,000 B. P7,250,000 C. P2,500,000 D. P4,500,000
PUMASA AKO Company and its subsidies own the following properties that are accounted for in accordane with international accounting standards: >Land held by the parent for undetermined use= P6,000,000 >A vacant building owned by the parent and to leased out under an operationg lease= P2,500,000 >Property held by a subsidiary, a real estate firm, in ordinary course of business= P2,000,000 >Property held by the parent for use in production= P4,000,000 >Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees= P2,000,000 >Land leased by the parent to a subsidiary under an operating lease= P2,500,000 >Property under construction for use as investment property=P 4,000,000 >Land held for future factory site= P3,500,000 >Machinery leased out by the parent to an unrelated party under an operating lease= P1,000,000 How much is the total investment property that should be repoted in the consolidated statement…
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from third-parties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them the same salaries as before. The above manufacturing plant is a cash-generating unit that generates outputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to Arya Company.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The set of assets is not capable of generating independent cash flows.…
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, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 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?
Bane Co. has the following assets on December 31, 2021: Land held for sale in the ordinary course of business 600,000 Land held for long-term capital appreciation 2,000,000 Land held for a currently determined future use 500,000 Land held for a future plant site 600,000 Equipment leased out under a normal lease 100,000 Building leased out under a finance lease 1,900,000 Building leased out under operating lease 750,000 Right-of-use of asset relating to a building held by the entity and leased out under an operating lease 1,200,000 Compute for the Total Amount of the Investment Property.
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from thirdparties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them thesame salaries as before. The above manufacturing plant is a cash-generating unit that generatesoutputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to AryaCompany.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The setof assets is not capable of generating independent cash flows. However,…
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from thirdparties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them thesame salaries as before. The above manufacturing plant is a cash-generating unit that generatesoutputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to AryaCompany.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The setof assets is not capable of generating independent cash flows. However,…
Among the assets of Lucas Company on December 31, 2021 are the following:Land held for long-term capital appreciation 3,500,000Land held for a currently undetermined future use 5,700,000Building included in inventory 16,600,000Land held for long-term speculation 1,400,000Equipment leased out under an operating lease 500,000Building rented out under finance lease 10,900,000Land owned by the entity and leased out under an operating lease 7.800,000Building owned by the entity and leased out under operating lease 11,800,000Land held for future site 5,600,000Building that is currently vacant but is held to…