Karina Company acquired a commercial land with a building on January 1, 2020 with separate acquisition price of P10,000,000 and P5,000,000 respectively. At that date, the building had a useful life of 30 years. The fair values of the land and building on December 31, 2020 were P12,000,000 and P7,000,000 while on December 31, 2021 the fair values were P11,000,000 and P6,500,000 respectively.

Required: 

1.Assuming the investment property is accounted at cost model, compute for the following:

a.) Carrying amount on December 31, 2020 and 2021.

b.) Expense or income recognized in profit or loss (Income Statement)

2.Assuming the investment property is accounted at fair value model, compute for the following:

a.)Carrying amount on December 31, 2020 and 2021.

b.)Expense or income recognized in profit or loss (Income Statement)