Sisig Corp. has the following information in its notes to the financial statements: • Land held for long term capital appreciation- P1,000,000 • Land held for a currently determined future use- P300,000 • Property that is being constructed or developed for future use as an investment property- P1,500,000 • Investment property being redeveloped- P2,000,000 • Building owned and leased out under operating lease- P450,000 • Owner-occupied property- P3,200,000 • Owner-managed hotel- P2,300,000 How much is the Investment Property to be presented in the statement of financial position? A. P4,950,000 B. P7,250,000 C. P2,500,000 D. P4,500,000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Sisig Corp. has the following information in its notes to the financial statements:
• Land held for long term capital appreciation- P1,000,000
• Land held for a currently determined future use- P300,000
• Property that is being constructed or developed for future use as an investment property- P1,500,000
• Investment property being redeveloped- P2,000,000
• Building owned and leased out under operating lease- P450,000
• Owner-occupied property- P3,200,000
• Owner-managed hotel- P2,300,000
How much is the Investment Property to be presented in the
A. P4,950,000
B. P7,250,000
C. P2,500,000
D. P4,500,000
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