You Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000 Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. At what amount should the land and building be recorded on December 31, 2021?

You Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000 Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. At what amount should the land and building be recorded on December 31, 2021?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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He Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000 How much fair value gain should He company report in profit or loss for year 2021?
She Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. How much gain on is to be recorded by She on reclassification of the asset?
She Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. How much gain on is to be recorded by She on reclassification of the asset? At what amount should the land and building be recorded on December 31, 2021?
They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows:    Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000  ------- 10,000,000 How much fair value gain should They company report in profit or loss for year 2021?note: uses cost model
They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows:    Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000  ------- 10,000,000 How much fair value gain should They company report in profit or loss for year 2021?
1.)They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows:    Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000  ------- 10,000,000 How much fair value gain should They company report in profit or loss for year 2021? 2.)He Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020…
2. 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 fair value model, what is the carrying value on Dec. 31, 2020? b. Using the fair value model, what is the gain or (loss) from change in fair value?
2. On Sept 30, 2020, ABC acquired a building to earn rent throughoperating leases. The investment property was initially measured atP20,000,000. It has an estimated useful life of 25 years and aresidual value of P400,000. It has a fair value of P22,000,000 andP23,000,000 as of the end of 2020 and 2021 respectively. Using the fair value model, what is the gain or (loss) fromchange in fair value in 2021?
On January 1, 2020, Single Company which uses the fair value model, purchases an investment property at a cost of P50,000,000. At December 31, 2020 the market value of the property is P60,000,000. The fair market value of the property on December 31, 2021 is P55,000,000. On January 1, 2022, the property was reclassified to property, plant and equipment. At what amount should the property, plant and equipment be initially recorded? * Note: ANSWER ONLY
We Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses fair value model for its investment property.what is the carrying value of the property at December 31, 2020?
Please provide solution 1. On December 31, 20x1, DECAPITATE BEHEAD Co. decided to lease out under operating lease one of its buildings that was previously used as office space. The building has an original cost of ₱12,000,000 and accumulated depreciation of ₱8,000,000 as of January 1, 20x1. Annual depreciation is ₱400,000. DECAPITATE Co. uses the fair value model for investment property. The fair value of the building on December 31, 20x1 is ₱6,000,000. The entry to record the transfer of the building to investment property includes a: a. credit to gain on reclassification for ₱2,000,000. b. credit to revaluation surplus for ₱2,000,000. c. debit to building for ₱12,000,000. d. credit to revaluation surplus for ₱2,400,000.
Entity A acquires a building for P1,000,000. The building is to be leased out under various operating leases. The building has an estimated useful life of 10 years and zero residual value. Entity A uses the cost model for its property, plant and equipment and the fair value model for its investment property. At the end of Year 1, the building is assessed to have a fair value of P1,080,000.How much should Entity A recognize in profit or loss in relation to the building?