Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi! I need help on these problems. Thank you! Investment Property (PAS 40) Problem 12. The following items are included in the Investment Property Account
Hi! I need help on these problems. Thank you!
Investment Property (PAS 40) Problem 12. The following items are included in the Investment Property Account of Ayala Land Inc.: Land held for future plant site P 1,000,000 Land held for a currently undetermined use 2,000,000 Building held by entity under finance lease and leased out under operating lease 3,000,000 Property that is being constructed or developed on behalf of third parties 1,000,000 Building that is being developed for future use as administrative building 2,000,000 Property that is leased out to another entity under a finance lease 1,000,000 Machine leased to another entity under an operating lease 3,000,000 Equipment held for currently undetermined use 1,000,000 Car held for a long-term capital appreciation 2,000,000 Building occupied by employees paying rent at market rate 4,000,000 Land and building that is being developed for future operating lease 6,000,000 Property held for sale in the ordinary course of business 3,000,000 Land classified as held for sale 5,000,000 Land and building leased out to Avida Land Inc., its subsidiary, under operating Lease 6,000,000 Required: What is the total amount of Investment Property that shall be presented by Ayala Land Inc. in its (1) Separate Statement of Financial Position and (2) its Consolidated Statement of Financial Position?Problem 13. On January 1, 2015, Ayala Land Inc. constructed a mall to be leased out under operating lease at a total cost of P56,000,000 with a useful life of 6 years and residual value of P2,000,000. The fair values of the mall as of several dates are provided by the appraiser of the company as follows. The cost to sell is 10% of the fair value for each year. The value in use is not available. 12/31/2015 P60,000,000 12/31/2016 40,000,000 12/31/2017 50,000,000 On January 1, 2018, Ayala Land Inc. sold the mall for P54,000,000 and incurred P1,000,000 as disposal cost. Required: Based on the result of your audit, determine the following: 1. Carrying amount of investment property on 12/31/2015 using cost model 2. Carrying amount of investment property on 12/31/2016 using cost model 3. Carrying amount of investment property on 12/31/2017 using cost model 4. Depreciation expense for year 2015 using cost model 5. Depreciation expense for year 2016 using cost model 6. Depreciation expense for year 2017 using cost model 7. Impairment loss for year 2015 using cost model 8. Impairment loss for year 2016 using cost model 9. Gain on reversal of impairment loss for year 2017 using cost model 10. Carrying amount of investment property on 12/31/2015 using fair value model 11. Carrying amount of investment property on 12/31/2016 using fair value model 12. Carrying amount of investment property on 12/31/2017 using fair value model 13. Gain/(Loss) on changes in fair value using fair value model for year 2015 14. Gain/(Loss) on change in fair value using fair value model for year 2016 15. Gain/(Loss) on change in fair value using fair value model for year 2017 16. Gain/(Loss) on disposal of investment property using fair value model on 1/1/2018 17. Gain/(Loss) on disposal of investment property using cost model on 1/1/2018Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started