Problem 16-11: [Owner-occupied Property to lnvestrnent Property] On January 2, 2014, Grand Company made a test of impairment on one of its buildings carried as plant asset. The test on impairment revealed a recoverable value of P5,500,000 in that building. The carrying value of this building as of January 2, 2014 is P0000000 with a remaining useful life of 10 years. Problem 16-13 (Inventory to Investment Property] On January 2, 2010, Haven Corporation acquired a track of land that is to be sold in the ordinary conduct of business. The purchase price of the property of P50000000 was paid in cash and atotal transaction costs of P500000 related to the acquisition of the property was also paid at a later date. The land was subdivided into 2,000 lots (200 square meters for every lot] for an additional cost of P5,500,000. On December 31, 2011, the market value of the lot was P1,500 per square meter. Problem 16-12: [Owner-occupied Property to lnvestrnent Property] On January 2, 2002, Tower Company acquired a building costing P10000000 Tower Company estimated that the useful life of the property is 20 years. Tower Company's policy is to depreciate all depreciable assets using the straight-line method, without scrap. On January 2, 200?, the building has a recoverable value of P0000000 base on its revised remaining useful life of 20 years and Tower company immediately remeasured the building. Problem 16-1II: (Owner-occupied Property to Investment Property] On January 2, 2014, Mighty Company converted its occupied property to investment property that is to be carried at fair value. The carrying value of the property in the company's book is P4,000 ,000. Problem 16-5: [Acquisition Cost} Act Company acquired an investment property with an installment price of P2400000. The acquisition of the property requires a down payment of 20% and a non-interestbearing note payable at the end of each year tor ve years. The prevailing market rate of interest for similar instrument is 12%. The present value of factor pf annuity pf 12% for four periods is 3.50. Act Company incurred transaction costs amounting to P50000 for the property. Problem 16-6: (Acquisition Cost} Jelly Company acquired a real property for speculation purposes with the intention of selling it at a higher price in the longterm. The property was acquired at cash price of P,000,000. The property has P100000 unpaid real property tax assumed by Jelly Company. In addition, the company also paid the tollowing transaction costs: broker's commission of P20,000 and registration cost of 35,000. Problem 16-3: {Measure Subsequent to Acquisition} Chrome's investment property has a historical cost of P1400000. On December 31, 2014, the fair value of this investment property is P1800000 Problem :LE-E: (Owner-occupied Property to Investment Property] On January 1, 2014,Jim Company acquired an investment property at a total cost of P5000000. At December 31, 2014, the carrying value of the property in the company's books is P0000000. Problem 16-1: [Classification]