XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m. Requirement Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the Cost model andFair value model.

How much is the correct total amortization expense for 2020?

PEARS Company owned three investment properties. Details of the properties are as follows: (See photo) Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized for the year ended December 31, 2020?

Kiro Corporation acquired a real estate located in Manila City at the beginning of 2020 for a total acquisition cost of P6M. 10% of the acquisition cost is attributed to an existing building which Kiro Corporation intends to demolish to give way for the construction of a new 20-storey hotel building. The company incurred the following additional costs up to January of 2021, when it commenced the operation of the property:   Demolition costs                                                                                                  90,000 Real property taxes covering the periods (2019 and 2020)                                60,000 Special assessment by the city government of Manila for road and sewerage improvements                                                                                   120,000 Real estate broker's fees and commission                                                          80,000 Architects and Engineers Fees…