Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
10
Transcribed Image Text:Beginning of 2021, a land with a huge complex building
was purchased at P 50,000,000. It was then decided that
25% of the complex will be used for cockpit arena while
the rest of the spaces will be for rental. 80% of the total
cost was allocated to the land and that its total life is 50
years
and this was purchased by the entity after 20 years
of use by the previous owner. Additional Costs incurred
before use is at P 10,000,000. Its ending fair values are
110% and 112% of the original cost for 2021 and 2022,
respectively. If the property is subsequently accounted at
fair value model and depreciated on a straight line
method, what will be the carrying value of the
Investment Property at the end of 2022?
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