On January 1, 2021, Fourth Corporation have decided to rent out its five years old administrative...
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On January 1, 2021, Fourth Corporation have decided to rent out its five years old administrative building to third parties. The cost of the building is P5,000,000 with estimated useful life of 20 years at the time of construction with a fair value of P7,000,000 at the time of change of use. The fair value on December 31, 2021 is P6,000,000. The company measures its investment properties at fair value. How much is the revaluation surplus after recognizing the decline in fair value on December 31, 2021? *Show solution and with explanation* On January 1, 2021, Fourth Corporation have decided to rent out its five years old administrative building to third parties. The cost of the building is P5,000,000 with estimated useful life of 20 years at the time of construction with a fair value of P7,000,000 at the time of change of use. The fair value on December 31, 2021 is P6,000,000. The company measures its investment properties at fair value. How much is the revaluation surplus after recognizing the decline in fair value on December 31, 2021? *Show solution and with explanation*
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the initial carrying value of the building as follows Carrying value at the time of construction cos... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
Posted Date:
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