Question
PEARS Company owned three investment properties. Details of the properties are as follows: Initial Cost FV 12/31/19 FV 12/31/20 Property 1 2,700,000 3,200,000 3,500,000 Property
PEARS Company owned three investment properties. Details of the properties are as follows:
| Initial Cost | FV 12/31/19 | FV 12/31/20 | |
| Property 1 | 2,700,000 | 3,200,000 | 3,500,000 |
| Property 2 | 3,450,000 | 3,000,000 | 2,800,000 |
| Property 3 | 3,300,000 | 3,900,000 | 3,400,000 |
Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position?
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Louise Crawford, Stuart Manson
7th Edition
1473760186, 9781473760189
