121. 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:

a. Is recognized in profit and loss, or, for a revalued property, charged against revaluation surplus to the extent of its credit balance.

b. Is recognized in profit or loss at all times.

c. Is absorbed by retained earnings.

d. Is carried directly to equity.

122. A gain arising from a change in the fair value of the investment property for which an entity has opted to use the fair value method is recognized in:

a. Net profit or loss for the year

b. General reserve in the shareholders equity

c. Valuation reserve in the shareholders equity

d. None of the above

123. In case a property interest under an operating leases has been classified as an investment property:

a. The entity has to account for the investment property under the cost model.

b. The entity has to use the fair value model only.

c. The entity has the choice between the cost model and the fair value model.

d. The entity needs only to disclose the fair value and can use the cost model.

124. An investment property is derecognized when:

a. It is disposed to a third party.

b. It is permanently withdrawn from use.

c. Ne future economic benefits are expected from its disposal.

d. In all of the cases above

125. All of the following are classified as investment property, except:

a. Land held for capital appreciation rather than for short-term sale in the ordinary course of business.

b. A building owned by the entity (or held by the entity under a finance lease) and lease out under one or more operating leases.

c. A building that is vacant but is held to be leased out under one or more operating leases.

d. Property being constructed or developed on behalf of a third party.

126. Which of the following is classified as investment property?

a. Owner occupied property

b. Property that is being leased to another entity under a finance lease.

c. A property that is being constructed for a third party.

d. A building previously let out in one or more operating leases that is to be held for sale as is in the ordinary course of business.

127. Millennium Corporation owns an office building where nine out of ten floors are leased out to a third party under an operating lease, while the 10th floor is occupied by Millennium as its head office. What is the proper accounting treatment for this in Millenniums financial statements?

a. Nine floors are reported as Investment property while the tenth floor as property and equipment.

b. Nine floors are reported as property and equipment while the tenth floor as investment property.

c. The entire building is reported as investment property.

d. The entire building is reported as property and equipment.