Momo Company has a single investment property which had originally cost P2,320,000 on January 1, 2023. At December 31, 2023 its fair value was P2,040,000. On Acquisition, the property had a useful life of 40 years. According to PAS 40 – Investment Property, what should be the expense recognized in Momo’s profit or loss for the year ending December 31, 2023 under each of the fair value model and the cost model? Fair value model Cost model Fair value model Cost model A. 58,000 120,000 C. 58,000 106,000 B. 62,000 120,000 D. 120,000 120,000
Momo Company has a single investment property which had originally cost P2,320,000 on January 1, 2023. At December 31, 2023 its fair value was P2,040,000. On Acquisition, the property had a useful life of 40 years. According to PAS 40 – Investment Property, what should be the expense recognized in Momo’s profit or loss for the year ending December 31, 2023 under each of the fair value model and the cost model? Fair value model Cost model Fair value model Cost model A. 58,000 120,000 C. 58,000 106,000 B. 62,000 120,000 D. 120,000 120,000
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 75P
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Question
Momo Company has a single investment property which had originally cost P2,320,000 on January 1, 2023.
At December 31, 2023 its fair value was P2,040,000. On Acquisition, the property had a useful life of 40
years. According to PAS 40 – Investment Property, what should be the expense recognized in Momo’s
profit or loss for the year ending December 31, 2023 under each of the fair value model and the cost
model?
Fair value model Cost model Fair value
model
Cost model
A. 58,000 120,000 C. 58,000 106,000
B. 62,000 120,000 D. 120,000 120,000
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