On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment property was initially measured at P20,000,000. It has an estimated useful life of 25 years and a residual value of P400,000. It has a fair value of P22,000,000 and P23,000,000 as of the end of 2020 and 2021 respectively. a. Using the cost model, what is the depreciation expense for the year 2020? Note that asset was acquired on Sept. 30. b. Using the cost model, what is the carrying value of the investment property on Dec. 31, 2021?
On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment property was initially measured at P20,000,000. It has an estimated useful life of 25 years and a residual value of P400,000. It has a fair value of P22,000,000 and P23,000,000 as of the end of 2020 and 2021 respectively. a. Using the cost model, what is the depreciation expense for the year 2020? Note that asset was acquired on Sept. 30. b. Using the cost model, what is the carrying value of the investment property on Dec. 31, 2021?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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On Sept 30, 2020, ABC acquired a building to earn rent through
operating leases. The investment property was initially measured at
P20,000,000. It has an estimated useful life of 25 years and a
residual value of P400,000. It has a fair value of P22,000,000 and
P23,000,000 as of the end of 2020 and 2021 respectively.
a. Using the cost model, what is the
the year 2020? Note that asset was acquired on Sept. 30.
b. Using the cost model, what is the carrying value of the
investment property on Dec. 31, 2021?
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