3 - A company owns its own office building which it purchased in 2017 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2017: Year Year-End Fair Market Value ($ thousands ) 2017 1,000 2018 600 2019 800 2020 1,300 The impact (in $ thousands) on the income statement in 2020 will most likely be a gain of (ignoring depreciations): a) 200. b) 300. c) 500.

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that ba…