4, 5 and 6

Exercise 4 - Investment property transfers. Cabarroguis, Inc., a real estate company, has a property included in its inventory with a cost of P10,000,000 and net realizable value of P8,000,000 on December 31, 2019. Because of the decline in the real estate industry, the company decided to lease out the property to a tenant under an operating lease in 2020 when the fair value of the property was P7,000,000 Required: 1. If the company will use the cost model to measure the investment property, how much should be recognized in the 2020 income statement as a result of the transfer from inventory to investment property? 2. If the company will use the fair value model to measure the investment property, how much should be recognized in the 2020 income statement as a result of the transfer from inventory to investment property? Exercise 5 - Investment property transfers Daehan, Inc. owns a building purchased on January 1, 2016 for P100 million. The building was used as the company's he office. The building has an estimated useful life of 25 years. In 2020, the company transferred its head office and decided to lease out the old building. Tenants began occupying the old building by the end of 2020. On December 31, 2020, the company reclassified the building as Investment property to be carried at fair value. The fair value on the date of reclassification was P70 million Required: What amount of gain or loss will be presented in the 2020 profit or loss as a result of the transfer from owner-occupied to investment property? Exercise 6 - Investment property disposal. The Minguk Company purchased an investment property an 1 January 2017 for a cost of P220,000. The property had a useful life of 40 years and at 31 December 2019 had a fair value of P300,000. On 1 January 2020 the property was sold for net proceeds of P290,000. Minguk uses the cost model to account for investment properties Required: What is the gain or loss to be recognized in profit or loss for the year ended 31 December 2020 regarding the disposal of the property