Question
Golden Spring Limited had a specific property, plant and equipment (PPE) at cost of $400,000 on 1 January 2020. Accumulated depreciation on this asset was
Golden Spring Limited had a specific property, plant and equipment (PPE) at cost of $400,000 on 1 January 2020. Accumulated depreciation on this asset was $120,000 at this date. The company decided to reclassify the asset as investment property in accordance with IAS 40 on this date.
The double entry to record this reclassification is :
Select one:
A.
Dr Property,Plant and Equipment $280,000 Cr Investment Property $280,000
B.
Dr Property,Plant and Equipment $120,000 Cr Investment Property $120,000
C.
Dr Investment Property $120,000 CR Property,Plant and Equipment $120,000
D.
Dr Investment Property $280,000 CR Property,Plant and Equipment $280,000
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