On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated depreciation of Rp250 million. The entity uses revaluation model on the building. The entity made a fair value adjustment to its building and recognized loss of Rp100 million on December 31, 2021. On January 5, 2022, the entity decided to lease out that owner-occupied building and transferred it to investment property using the fair value model. At the time of transfer, the fair value of the building was Rp280 million. The gain/loss recognized in profit or loss on the transfer will be O a. gain of Rp130 million. b. gain of Rp30 million. c. gain of Rp100 million. O d. loss of Rp130 million.
On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated depreciation of Rp250 million. The entity uses revaluation model on the building. The entity made a fair value adjustment to its building and recognized loss of Rp100 million on December 31, 2021. On January 5, 2022, the entity decided to lease out that owner-occupied building and transferred it to investment property using the fair value model. At the time of transfer, the fair value of the building was Rp280 million. The gain/loss recognized in profit or loss on the transfer will be O a. gain of Rp130 million. b. gain of Rp30 million. c. gain of Rp100 million. O d. loss of Rp130 million.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 85P
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT