Bona Company purchased an investment property on January 1, 2021 for P2,200,000. The property had a useful life of 40 years and on December 31, 2023 had a fair value of P3,000,000. On Ďəcember 31, 2023 the property was sold for net proceeds of P2,900,000. The entity used the cost model to account for the investment property. What amount of gain or loss should be recognized for 2023 regarding the disposal of the property?

Bona Company purchased an investment property on January 1, 2021 for P2,200,000. The property had a useful life of 40 years and on December 31, 2023 had a fair value of P3,000,000. On Ďəcember 31, 2023 the property was sold for net proceeds of P2,900,000. The entity used the cost model to account for the investment property. What amount of gain or loss should be recognized for 2023 regarding the disposal of the property?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 76P

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