Investment Property The Niagara Company owns three properties, which are classified as investment properties according to IAS 40. Details of the properties are given below: Property I: Initial Cost - P250,000 FV at 12/31/2022 -P220,000 FV at 12/31/2023- P240,000 Property II: Initial Cost - P355,000 FV at 12/31/2022 -P305,000 FV at 12/31/2023- P288,000 Property II: Initial Cost - P350,000 FV at 12/31/2022 -P375,000 FV at 12/31/2023- P365,000 Each property was acquired in 2019 with a useful life of 50 years. The company's accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized in Niagara's profit or loss for the year ending December 31, 2023? a. P62,000 loss b. P27,000 loss c. P20,000 gain d. P 7,000 loss

Investment Property The Niagara Company owns three properties, which are classified as investment properties according to IAS 40. Details of the properties are given below: Property I: Initial Cost - P250,000 FV at 12/31/2022 -P220,000 FV at 12/31/2023- P240,000 Property II: Initial Cost - P355,000 FV at 12/31/2022 -P305,000 FV at 12/31/2023- P288,000 Property II: Initial Cost - P350,000 FV at 12/31/2022 -P375,000 FV at 12/31/2023- P365,000 Each property was acquired in 2019 with a useful life of 50 years. The company's accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized in Niagara's profit or loss for the year ending December 31, 2023? a. P62,000 loss b. P27,000 loss c. P20,000 gain d. P 7,000 loss

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 35P

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ABC Company reported three items in its Investment Property category, with the following details:Property AInitial Cost - P5,400,000Fair Value, 12/31/22 - P8,000,000Fair Value, 12/31/21 - P6,400,000Property BInitial Cost - 6,900,000Fair Value, 12/31/22 - 4,200,000Fair Value, 12/31/21 - 6,000,000Property CInitial Cost - 6,600,000Fair Value, 12/31/22 - 7,800,000Fair Value, 12/31/21 - 7,200,000All of them were acquired in 2021 with a useful life of 10 years. The company's policy is to use the fair value model for all its investment property.What is the net amount reported in profit or loss for the year ended December 31, 2022 relating to ABC Company’s investment property? a. P 400,000 b. P 400,000 c. P1,100,000 d. P1,890,000
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