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?*
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- 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
₱ 5,320,000
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