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A firm purchased its office building 20 years ago for 320 million. The land portion was valued at $2.0 million at that time while Improvements,
A firm purchased its office building 20 years ago for 320 million. The land portion was valued at $2.0 million at that time while Improvements, including the building, at P18.0 million. The useful life of the asset was ostimated at 20 years. The firm uses straight-line depreciation for its physical assets. It's past 20 years. The firm wants to know the value of the property as it is contemplating to offer it as collateral for a loan it is negotiating with a bank. An appraisal report prepared by a licensed appraiser valued the land at P25.0 million & the bullding at P15.0 million for a total of P40.0 million. How much should the carrying value of the property be reflected in the firm's books
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