Question 5 (1 point) Which of the following statements correctly describes accounting for investment properties? a) ASPE contains specific guidance for accounting for investment properties, whereas IFRS does not. Ob) It is possible for only a portion of a property to be considered an investment property. Oc) A building that is solely occupied by the owner is an investment property. d) The cost of an investment property includes the day-to-day costs of operating the property. Question 6 (1 point) Which of the following would be considered an investment property under IFRS? a) A company owns land that it plans to hold for at least 10 years because management feels that the property will increase in value. Ob) A company is constructing an office tower, which it plans to occupy in the future for the purpose of housing its operations. O c) A building that is fully occupied by the company that owns it. d) A company owns a hotel and its surrounding land, and provides housekeeping, recreation, and maintenance services. Question 71 noint) Question 4 (1 point) Swanson Ltd. holds 15% of the common shares of Virginia Inc. Swanson is able to appoint three members of Virginia's 12-member board of directors and is a supplier of raw materials to Virginia. The remaining 85% of Virginia's common shares are widely held. Virginia is a private company. Assuming that Swanson reports under ASPE, what are the reporting options for its investment in Virginia? a) Swanson must use the fair value method. b) Swanson must use the consolidation method. c) Swanson can use the cost or fair value method. d) Swanson can use the cost or equity method. Question 5 (1 point) Which of the following statements correctly describes accounting for investment properties? Question 3 11 point) On January 1, 2020, Orange Co. purchased a 35% interest in Lemon Co. for $800,000. Orange reports this investment using the equity method because it has significant influence. Both companies have a December 31 year end and report under IFRS. For the year ended December 31, 2020, Lemon reported profit of $470,000 and paid total cash dividends of $50,000. The fair value of Orange's 35% interest in Lemon at December 31, 2020, was $840,000. What is the value of Orange's investment in Lemon as at December 31, 2020? a) $947.000 b) $800,000 c) $840,000 d) $1,220,000 Question 4 (1 point) Swanson Ltd. holds 15% of the common shares of Virginia Inc. Swanson is able to appoint three members of Virginia's 12-member board of directors and is a supplier Ques Common Corp. has been acquiring shares of Fort Co. over the last three years and now owns 42% of the outstanding voting common shares. The remaining 58% of the shares are held by members of the same family. To date, the family has elected all members of the board of directors, and common has not been able to obtain a seat on the board, Common is hoping to eventually buy a block of shares from an elderly family member and thus one day own 60% of the shares. Common reports under IFRS. How should Common report the investment in Fort in its financial statements? a) Common should prepare consolidated financial statements with Fort. b) Common should use the equity method to account for the investment in Fort. Common should use the equity method or the cost method to account for the investment in Fort. Common should use the cost method or fair value method to account for the investment in Fort. Question 2 (1 point) Which of the following factors contributes to an investor having significant influence over an investee? a) Insignificant transactions occur between the investor and the investee. Ob) The investor owns more than 50% of the common shares outstanding of the investee. C There is an interchange of managerial personnel between the investor and investee. d) The investor is not represented on the board of the investee