MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 3i and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 – P11,700,000 2020 – P11,960,000 2021 – P12,000,000 2022 – P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) а. b. с. d.
MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 3i and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 – P11,700,000 2020 – P11,960,000 2021 – P12,000,000 2022 – P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) а. b. с. d.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 5E: Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar...
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