When an owner-occupied property is transferred to investment property at fair value, a decrease in the carrying amount of the property to its fair value at the date of transfer Group of answer choices is carried directly to equity. is recognized in profit and loss at all times. is recognized in profit and loss, or, for a revalued property, charged against the revaluation surplus to the extent of its credit balance. is absorbed by retained earnings.

When an owner-occupied property is transferred to investment property at fair value, a decrease in the carrying amount of the property to its fair value at the date of transfer Group of answer choices is carried directly to equity. is recognized in profit and loss at all times. is recognized in profit and loss, or, for a revalued property, charged against the revaluation surplus to the extent of its credit balance. is absorbed by retained earnings.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 10DQ

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40 When reclassification is made from owner-occupied property to investment property that will be carried at fair value, the excess of the fair value over the carrying value at the date of transfer is a. ignored b. recognized as gain on transfer c. credited to revaluation surplus d. debited to loss on transfer
1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…
43 If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying value, the difference is treated as a. gain b. impairment loss c. depreciation expense d. prior period adjustment
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