The Lancer Company has a single investment property, which had original cost of P580,000 on January 1, 2020. At December 31, 2022, its fair value was P600.000 and at December 31, 2023, it had a fair value of P590,000. On acquisition, the property had a useful life of 40 years. According to IAS 40 Investment Property, what should be the expense recognized in Lancer's profit or loss for the year ending December 31, 2023 under each of the fair
The Lancer Company has a single investment property, which had original cost of P580,000 on January 1, 2020. At December 31, 2022, its fair value was P600.000 and at December 31, 2023, it had a fair value of P590,000. On acquisition, the property had a useful life of 40 years. According to IAS 40 Investment Property, what should be the expense recognized in Lancer's profit or loss for the year ending December 31, 2023 under each of the fair
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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The Lancer Company has a single investment property, which had original cost of P580,000 on January 1, 2020. At December 31, 2022, its fair value was P600.000 and at December 31, 2023, it had a fair value of P590,000. On acquisition, the property had a useful life of 40 years.
According to IAS 40 Investment Property, what should be the expense recognized in Lancer's profit or loss for the year ending December 31, 2023 under each of the fair value model and the cost model?
According to IAS 40 Investment Property, what should be the expense recognized in Lancer's profit or loss for the year ending December 31, 2023 under each of the fair value model and the cost model?
a. FV model - P14,750; Cost model- P14,500
b. FV model - P10,000; Cost model- P14,500
c. FV model - P14,500; Cost model- P10,000
d. FV model - P10,000; Cost model- P14,750
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