2. Classic Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards:

*Land held by the parent for undetermined use5,000,000

*A vacant building owned by the parent and to be leased

out under an operating lease3,000,000

*Property held by a subsidiary, a real estate firm, in the

ordinary course of business2,000,000

*Property held by the parent for use in production4,000,000

*Building owned by a subsidiaryand for which the subsidiary

provides security and maintenance services to the lessees1,500,000

*Land leased by the parent to a subsidiary under an operating

lease2,500,000

*Property under construction for use as investment

property6,000,000

*Land held for future factory site3,500,000

*Machinery leased out by the parent to an unrelated

party under an operating lease1,000,000

Required:

1. Compute the total investment property that should be reported in the consolidated financial position of Classic Company and its subsidiaries.

2. Indicate the classification of the assets that are excluded from investment property.