. PEARS Company owned three investment properties. Details of the properties are as follows: (Refer to photo attached) Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. a. What is the gain or loss to be recognized for the year ended December 31, 2020? (If loss, put a negative sign before the numerical answer) - For this question, I got an answer of -400,000. May I ask if this is correct or not. b. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position?
. PEARS Company owned three investment properties. Details of the properties are as follows: (Refer to photo attached) Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. a. What is the gain or loss to be recognized for the year ended December 31, 2020? (If loss, put a negative sign before the numerical answer) - For this question, I got an answer of -400,000. May I ask if this is correct or not. b. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. PEARS Company owned three investment properties. Details of the properties are as follows: (Refer to photo attached)
Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties.
a. What is the gain or loss to be recognized for the year ended December 31, 2020? (If loss, put a negative sign before the numerical answer) - For this question, I got an answer of -400,000. May I ask if this is correct or not.
b. What is the carrying value of the investment properties that should be presented in the 2020
Transcribed Image Text:Fair Value
Fair Value
Initial Cost
December 31, 2019
December 31, 2020
P 2,700,000
P 3,200,000
Property 1
Property 2
Property 3
P 3,500,000
3,450,000
3,000,000
2,800,000
3,300,000
3,900,000
3,400,000
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