1.FBI Company, a real estate entity, has a building with a carrying amount of P20,000,000 on December 31, 2019. The building is used as office of the entity's administrative staff.

The following events have occurred on December 31, 2019:

• The entity intended to rent out the building to independent third parties (the staff will be moved to a new building purchased early in 2019. The original building had a fair value of P35,000,000
• The entity also had a land that was held in the ordinary course of business. The land had a carrying amount of P10,000,000 and fair value of P15,000,000. On such date, the entity decided to hold the land for capital appreciation.

The accounting policy is to carry all investment property at fair value.

On December 31, 2019, what amount should be recognized in profit or loss as a result of transfer of the land to investment property?

2.FBI Company, a real estate entity, has a building with a carrying amount of P20,000,000 on December 31, 2019. The building is used as office of the entity's administrative staff.

The following events have occurred on December 31, 2019:

• The entity intended to rent out the building to independent third parties (the staff will be moved to a new building purchased early in 2019. The original building had a fair value of P35,000,000
• The entity also had a land that was held in the ordinary course of business. The land had a carrying amount of P10,000,000 and fair value of P15,000,000. On such date, the entity decided to hold the land for capital appreciation.

The accounting policy is to carry all investment property at fair value.

On December 31, 2019, what amount should be recognized in revaluation surplus as a result of transfer it the building to investment property?

3.Quantico Company provided the following information relative to a bond sinking fund placed in trust as required by the underwriter of the bonds for 2019:

Carrying amount of bonds payable P14,300,000

Bond sinking fund, January 17,000,000

Additional investment during the year 1,400,000

Administrative costs 880,000

Interest revenue 550,000

Dividends on investment 300,000

What amount should be reported in the December 31, 2019 statement of financial position as bond sinking fund?

4.What would be the lump sum contribution on January 1, 2019 in order to accumulate P4,000,000 at the rate of 10% compounded annually for 6 years?

Note: Round off future value factors to four decimal places (e.g X.XXXX). Round off amounts to the nearest peso.

5.What would be the annual contribution to the fund at the end of each year for 5 years in order to accumulate P5,000,000 at the rate of 11% compounded annually? The first contribution is made on December 31, 2019 and every December 31 thereafter.

Note: Round off future value factors to four decimal places (e.g X.XXXX). Round off amounts to the nearest peso.