Keil Company has a single investment property which had an original cost of P5,800,000 on January 1, 2017. At December 31, 2019, the fair value was P6,000,000 and at December 31, 2020 the fair value was P5,900,000. On acquisition, the property had a useful life of 40 years. What should be the expense recognized in Keil Company's profit or loss for the year ended December 31, 2020 under the fair value model and the cost model? Fair Value Model Cost Model

Keil Company has a single investment property which had an original cost of P5,800,000 on January 1, 2017. At December 31, 2019, the fair value was P6,000,000 and at December 31, 2020 the fair value was P5,900,000. On acquisition, the property had a useful life of 40 years. What should be the expense recognized in Keil Company's profit or loss for the year ended December 31, 2020 under the fair value model and the cost model? Fair Value Model Cost Model

Name: Keil Company has a single investment property which had an original c
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Keil Company has a single investment property which had an original cost of P5,800,000 on January1, 2017. At December 31, 2019, the fair value was P6,000,000 and at December 31, 2020 the fairvalue was P5,900,000. On acquisition, the property had a u

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

See similar textbooks

Similar questions

Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.