The investment property should be initially recognized at?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entity A acquired a building at a purchase price of 10,000,000 and spends an additional 3,000,000 in getting the building to the condition for its intended use. The building is intended to be leased out under various operating leases. Accordingly, it is classified as investment property. The building becomes available for lease on January 1, 20x1 at which date, Entity A estimate its useful life to be 20 years, with no residual value. On December 31, 20x1, the investment property's fair value is 12,000,000.
The investment property should be initially recognized at?
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