Question
Blue Corp. bought a building for earning rental income only on Jan 1, 2021. The cost of the building is $1,000,000 and the useful life
Blue Corp. bought a building for earning rental income only on Jan 1, 2021. The cost of the building is $1,000,000 and the useful life is 25 years. Blue Corp classified the building as investment property and apply fair value model. The fair value of the building is $1,200,000 as of Dec 31, 2021. Which of the following statement is correct?
Question 49Select one:
a.
The cost of the building would still be at $1,000,000.
b.
Blue Corp will not be recording depreciation expense.
c.
Blue Corp will credit OCI - Revaluation gain of $200,000.
d.
Blue Corp will need to first record depreciation expense of $40,000.
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