RST Company acquired a building on January 1, 2021, for P25,000,000. At that date, the building has a useful life of 50 years. The fair value of the building was P28,000,000 on December 31, 2021. The building was appropriately classified as investment property and RST is using the fair value model in accounting the investment property. What amount shall be used in the statement of financial position on December 31, 2021?
RST Company acquired a building on January 1, 2021, for P25,000,000. At that date, the building has a useful life of 50 years. The fair value of the building was P28,000,000 on December 31, 2021. The building was appropriately classified as investment property and RST is using the fair value model in accounting the investment property. What amount shall be used in the statement of financial position on December 31, 2021?
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...
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9. RST Company acquired a building on January 1, 2021, for P25,000,000. At that date, the building has a useful life of 50 years. The fair value of the building was P28,000,000 on December 31, 2021. The building was appropriately classified as investment property and RST is using the fair value model in accounting the investment property. What amount shall be used in the statement of financial position on December 31, 2021?
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