(i) A commercial property that is currently owned by Connect Ltd and rented to an events management company under a finance lease. (ii) A building currently under construction by Connect Ltd. Upon completion, the company plans to use it for warehousing. (iii) A warehouse owned by Connect Ltd and is rented out to Star Ltd under an operating lease to store its office furniture during the renovation period. (vi) A freehold premise owned by Connect Ltd. The company intends to sell it at a good value as soon as a potential buyer is found. Blank 4 (v) A building owned by Connect Ltd and currently occupied by its administration and finance departments. Blank 5 (vi) A factory owned by Connect Ltd and is being rented out to a manufacturer of computer accessories on a non-cancellable three-year lease. (vii) Some residential apartment units owned by Connect Ltd and currently rented to its directors at market rental rates. (viii) A piece of office equipment owned by Connect Ltd but currently not in use. Connect Ltd intends to sell it when the price is right.
Connect Ltd is a manufacturer and wholesaler of electrical appliances. Indicate if the following items are to be classified as investment properties in the company’s accounts.
State Yes or No in the box below.
(i) A commercial property that is currently owned by Connect Ltd and rented to an events management company under a finance lease.
(ii) A building currently under construction by Connect Ltd. Upon completion, the company plans to use it for warehousing.
(iii) A warehouse owned by Connect Ltd and is rented out to Star Ltd under an operating lease to store its office furniture during the renovation period.
(vi) A freehold premise owned by Connect Ltd. The company intends to sell it at a good value as soon as a potential buyer is found.
Blank 4
(v) A building owned by Connect Ltd and currently occupied by its administration and finance departments.
Blank 5
(vi) A factory owned by Connect Ltd and is being rented out to a manufacturer of computer accessories on a non-cancellable three-year lease.
(vii) Some residential apartment units owned by Connect Ltd and currently rented to its directors at market rental rates.
(viii) A piece of office equipment owned by Connect Ltd but currently not in use. Connect Ltd intends to sell it when the price is right.
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