please answer within 30 minutes. EX 5: Transfers of investment propertyA company acquired a building for CU 100 000 in 20X1 and rented it out to tenants forseveral years.On 1 January 20X4, the company decided to terminate the rental contracts with tenants andstarted to use the building for its own office space.On 1 January 20X4:●Carrying amount of building was CU 150 000 (being its fair value)Expected useful life is 30 yearsFair value of building at 31 December 20X4 was CU 155 000.Show the journal entries with respect to this building in 20X4. Company applies cost modelfor its poroperty, plant and equipment and fair value model for its investment property.

Introduction: Carrying amount: Generally Carrying amount is the amount at which an asset is…

EX 5: Transfers of investment property A company acquired a building for CU 100 000 in 20X1 and rented it out to tenants for several years. On 1 January 20X4, the company decided to terminate the rental contracts with tenants and started to use the building for its own office space.

EX 5: Transfers of investment property A company acquired a building for CU 100 000 in 20X1 and rented it out to tenants for several years. On 1 January 20X4, the company decided to terminate the rental contracts with tenants and started to use the building for its own office space.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 18P

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please answer within 30 minutes.

EX 5: Transfers of investment property
A company acquired a building for CU 100 000 in 20X1 and rented it out to tenants for
several years.
On 1 January 20X4, the company decided to terminate the rental contracts with tenants and
started to use the building for its own office space.
On 1 January 20X4:
●
Carrying amount of building was CU 150 000 (being its fair value)
Expected useful life is 30 years
Fair value of building at 31 December 20X4 was CU 155 000.
Show the journal entries with respect to this building in 20X4. Company applies cost model
for its poroperty, plant and equipment and fair value model for its investment property.

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