Financial statements LO5,9 An entity purchases a rental property for $10000000 as an investment. The building

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Financial statements  LO5,9 An entity purchases a rental property for $10000000 as an investment. The building is fully rented and is in a good area. At the end of the current year, the entity hires an appraiser who reports that the fair value of the building is $15000000 plus or minus 10%. Depreciating the building over50nyears would reduce the carrying amount to $9800000. Required1.What are the relevance and faithful representation accounting considerations in deciding how to measure the building in the entity’s financial statements?2. Does the conceptual framework lead to measuring the building at $15000000? Or at $9800000? Or at some other amount?

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