Shiela Company has three investment properties with the following details: Initial Cost, 01/01/21 FV at 01/01/21 FV at 12/31/21 Property 1 2,500,000.00 2,600,000.00 2,725,000.00 Property
| Shiela Company has three investment properties with the following details: | ||||||||
| Initial Cost, 01/01/21 | FV at 01/01/21 | FV at 12/31/21 | ||||||
| Property 1 | 2,500,000.00 | 2,600,000.00 | 2,725,000.00 | |||||
| Property 2 | 2,000,000.00 | 2,100,000.00 | 2,095,000.00 | |||||
| Property 3 | 1,500,000.00 | 1,600,000.00 | 1,750,000.00 | |||||
| Each property was acquired in 2021 with an estimated useful life of 5 years and an estimated residual value of 5% based on initial cost. | ||||||||
| If the entity uses the fair value model, what is the amount presented in the 2021 Income statement? If the entity uses cost model, what is the amount presented in the 2021 Income statement? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Fair value Model Property 1 Property 2 Property 3 Initial fair value 010121 2600000 2100000 ...
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Step: 2
Step: 3
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Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
