MC19 The Diane Company has a single investment property acquiredon July 1, 2019 for P11,400,000. The property has anestimated useful life of 40 years and an estimated residualvalue of P600,000. The company's accounting period ends onDecember 31 andusesthe straight-line method ofdepreciation, computed to the nearest month. The fair valuesof the property at the end of each year follows:2019 - P11,700,0002020 - P11,960,0002021 - P12,000,0002022 - P11,700,000Using the cost model, what is the amount reported in the 2022profit or loss?P135,000P270,000P300,000P(300,000)a.b.с.d.MC20 Use data of MC19. Under the fair value model, what is theamount reported in the 2022 profit or loss?P135,000P270,000P300,000P(300,000)a.b.с.d.

Under cost model method, the investment is valued as per the cost of the asset means there will be a…

Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. C. d. 20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss?

Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. C. d. 20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss?

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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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Question

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 31 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)
a.
b.
с.
d.
MC20 Use data of MC19. Under the fair value model, what is the
amount reported in the 2022 profit or loss?
P135,000
P270,000
P300,000
P(300,000)
a.
b.
с.
d.

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