cost model. What amount should be carried in the statement of financial position as investment property?

Q: On January 1, 2020, Scholastic Company acquired a building to be held as investment property in a…

A: In order to determine the carrying value of the building the accumulated depreciation is required to…

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: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…

A: Depreciation expense is an expense which is charged on fixed assets over the years the assets is…

Q: On December 31, 2020, ABC Company has an item of machinery with a cost of P 4,500,000 and an…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

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: UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On July 15, 2016, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A:

Q: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…

A: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…

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: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

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: 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: On January 1, 2021, an entity purchased a building to be leased to a 3rd party. The cost of the…

A: Depreciation of building (in million) = (Rp 320 - Rp20)/20 years = Rp 15 million per annum…

Q: carrying amount of the machine as of December 31, 2020

A: As per IAS 8 a change in accounting estimate has to be adjusted prospectively. Accounting estimates…

Q: Love Company owns a building purchased on January 1, 2018 for P50 million.  The building was used as…

A: The profit realized is calculated by deducting the carrying value from the fair value of the asset.…

Q: On January 3, 2018, Brave company acquired an item of property, plant and equipment at a cost of…

A: Calculation of Accumulated depreciation till October 1, 2021 :- Depreciation per year: = (Cost -…

Q: On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale…

A: JOURNAL ENTRY IS AN ART OF RECORDING BUSINESS TRANSACTION EITHER ECONOMIC OR NON ECONOMIC .   1.…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful…

A: Impairment of fixed assets means when fair value of the fixed assets is less than the carrying value…

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: On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as…

A: Revaluation surplus is disclosed in the equity section of the company’s statement of financial…

Q: On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: On January 1, 2015, MARS Inc. acquired a real property consisting of a land with a building for…

A:

Q: RST Company acquired a building on January 1, 2021, for P25,000,000. At that date, the building has…

A: Fair Value Model: The circumstances of the market as at the conclusion of the reporting period are…

Q: Calculate the annual charge for depreciation for the first five years of the building's life and the…

A: Depreciation: Depreciation can be defined as a non-cash expense that reduces the value of the fixed…

Q: On June 1, 2022, Levine Company purchased three machines for $540, 000. The following information is…

A: Calculation of book value of the machine C as on December 31,2028::: Depreciation Expense=(Cost of…

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: Lopez acquired a building on June 1, 2016, for $1,000,000. Compute the depreciation deduction…

A: Solution Depreciation means to reduction the cost of an asset over its useful life. Depreciation are…

Q: .Johnson Inc., owns a building purchased on Jan 1, 2017 for P50 M. The building was used as the…

A: Depreciation expense is the reduction in the particular asset due to its use or with the passage of…

Q: On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.…

A: Land is not a depreciable asset , therefore no depreciation will be charged on Land . As per…

Q: On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and…

A: Carrying amount of asset = Historical cost - Accumulated depreciation As per PFRS 5 once non current…

Q: XYZ Company, a calendar year business, purchased machinery on February 2, 2016. The purchase price…

A: Lets understand the basis. As per IAS 16 "Property plant and equipment" initially needs to record at…

Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…

A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…

Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…

A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…

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: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting…

A: Accounting policies: Accounting policies can be defined as the procedure used and the principles…

Q: Muskoko Inc. purchased a property for $1.800,000 in 2022. The carrying value of property was…

A: Correct option: B. Impairment loss of $ 250,000 Incorrect options: A. Impairment gain of $ 550,000…

Q: On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment…

A: Investment Property is a property which is held by the owner or lessee for the purpose Earning…

Q: ABC Compant purchased an investment property on July 1, 2016 for P4,200,000. The property had a…

A: This question deals with the IAS 40 "Investment property". Investment property is a land or building…

Q: James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below…

A: Lets understand the basics. When multiple assets are purchased for a single price then asset needs…

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: In 2018, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On January 01, 2020, Sisig Corp. acquired an investment property, and the initial cost of the…

A: The investment property refers to the investment that is either used for capital appreciation or for…

Q: Merida company acquired an item of property, plant and equipment at a cost of P1,000,000 on January…

A: Asset held for sale are those assets which as per IFRS 5 has been decided to sell by the management…

Q: Jasmin Company purchased an investment property on January 1, 2017 at a cost of P2,200,000. The…

A: Cost of investment property = 2200000 Use ful life = 40 years Deprecation for 2 years =2200000/40…