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On January 1, 2019, the Mindy St. Claire, Inc. bought a piece of land worth P2,600,000. The company is engaged in buy and sell of

On January 1, 2019, the Mindy St. Claire, Inc. bought a piece of land worth P2,600,000. The company is engaged in buy and sell of land. On February 14, 2021, the company leased the land under an operating lease to another company. The estimated selling price and cost to sell of the inventories for the past two years is as follows:

12/31/2019 12/31/2020 02/14/2021

Selling price P2,650,000 P2,750,000 P2,880,000

Cost to sell 150,000 120,000 130,000

Required: Account for the inventory and its transfer to investment property.

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