Compute what amount should the inventory be valued

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On January 2, 2019, Silent Corporation has an investment property that was carried at fair value with a carrying amount of Php 2,500,000 (historical cost, Php 2,400,000). As of December 31, 2019, the fair market value of the property is Php 2,600,000. On December 31, 2020, the fair market value of the property was Php 2,800,000. On this date, Silent Corporation decided to reclassify/transfer the property to inventory.

Problem 1: On the date of transfer, what amount should the inventory be valued?

Problem 2: Prepare the journal entries on December 31, 2020.

Reference no: EM132763092

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