Question
WENTY-ONE GUNS Company's accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One
WENTY-ONE GUNS Company's accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One investment property was measured at P8,000,000 on December 31, 2018.
The property had been acquired on January 1, 2018 for a total of P7,600,000, made up of P6,900,000 paid to the vendor, P300,000 paid to the local authority as a property transfer tax and P400,000 paid to professional advisers.
The useful life of the property is 40 years.
What is the gain to be recognized for 2018 with respect to the investment property?
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