A has an investment property acquired at a cost of P2,000,000. Depreciation is estimated to be P50,000 annually and a periodic repair costs of P15,000 per year as well as property tax of P5,000 are incurred by the company on an annual basis. The fair value of the investment property before taxes and repairs amounts to P2,100,000 at year end. What is the carrying value of A's investment property on December 31, 2021 considering that the fair value model is used?
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A has an investment property acquired at a cost of P2,000,000.
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- On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000 including transaction costs. On October 1, 2022, the fair value of property increases to P51,000,000. At December 31, 2022 the fair value of property is P47,000,000. The rental income received per quarter is P1,550,000. The property has a useful life of 50 years. If the company uses the cost model, what is the net effect on the profit or loss for the year ended December 31, 2022 in relation to the investment property? If the company uses the fair value model, what is the net effect on the profit or loss for the six months ended December 31, 2022 in relation to the investment property?A company purchased $142,000 of fixed assets that are classified as five-year MACRS property. The MACRS rates are 2, 32, 192, 1152..1152, and 0576 for Years 1 to 6, respectively. What will the accumulated depreciation be at the end of Year 4 if the tax rate is 21 percent and no bonus depreciation is taken? Instruction: Enter your response rounded to two decimal places.VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position? A. ₱ 5,054,000 B. ₱ 5,320,000 C. ₱ 5,087,250 D. ₱ 5,400,000
- VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?* ₱ 5,087,250 ₱ 5,400,000 ₱ 5,054,000 ₱ 5,320,000On 1 November 2019, Mushe Limited acquired a machine for N$ 100 000 formanufacturing purposes. The machine was put into use immediately. Payment of thepurchase price will take place on 15 th October 2020. Depreciation is written off at20% per annum according to the straight-line method. Wear and tear are allowed at10% per annum on the reducing balance method and is weighted on a timeproportional basis. The tax rate is 29%. The company reporting date is 31 December 1 November 2019 N$ 1= USD 1.3031 December 2019 N$ 1 = USD 1.2815 October 2020 N$ 1 = USD 1.05 RequiredShow the journal entries for 2019 and 2020 so as to comply with the requirements ofInternational Financial Reporting Standards (IFRS). Journal narrations are notrequired. (Ignore current tax)
- ACT Company acquired an investment property with an installment price of P2,400,000. The acquisition of the property requires a down payment of 20% and a non-interest bearing note payable at the end of each year for five years. The prevailing market rate of interest for similar instrument is 12%. ACT Company transaction costs amounting to P50,000 on the property. What is the cost of acquiring the property? Use 3-decimal interest factor.On January 1, 2021, Moo Company sold an asset with a carrying amount of P6,000,000 to Boo Company for P8,000,000. The asset had a fair value of P7,500,000 and a remaining useful life of six years. The asset was immediately leased back to Moo Company for a term of four years and annual rentals of P1,500,000 payable every yearend. The transfer qualified for as a sale and the lease was accounted for as a finance lease with an implicit interest rate of 12%. How much is the 2021 net income/loss of Moo Company relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the 2021 net income/loss of BooCompany relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the carrying amount of Moo Company's asset as of yearend 2021? How much is the 2022 net income/loss of Moo Company relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the 2022 net income/loss of Boo…At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $ 2,000,000. On December 31, 2019, the fair value was $2,200,000 and on December 31, 2020, the fair value was $1,950,000. The property had a useful life of 25 years. Under the cost method and fair value method, what is the carrying value of the investment that should be carried in the balance sheet as of December 31, 2020?
- On January 1, 2022, an SME acquired a building for P10,450,000 including P500,000 nonrefundable purchase taxes. The purchase agreement provided for payment to be made in full on December 31, 2022. Legal fees of P220,000 were incurred in acquiring the building and paid on January 1, 2014. The building is held to earn lease rentals and for capital appreciation. The discount rate is 10%. What is the initial cost of the investment property? *A company purchases an asset that costs $30,000. This asset qualifies as 3-year property under MACRS The company uses an after-tax discount rate of 13% and faces a 40% income tax rate, (a) Use the appropriate present value factors found in Appendix C. Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. Refer to Exhibit.12.4. (Round depreciation expense to 2 decimal places.) Depreciation Deduction Tax Present Values Sipped Vear Savings 21 3. 4We Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses fair value model for its investment property.what is the carrying value of the property at December 31, 2020?