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Determine gain or loss to be recognized in profit or loss

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Question - Masipag Company purchased an investment property on October 1, 2016 at a cost of P2, 500, 000. The property has a useful life of 10 years and residual value of P100, 000. On December 31, 2020, the property had a fair value of P2, 300, 000. The company's depreciation policy is straight-line basis computed to the nearest month. On February 1, 2021, the property was sold for net proceeds of P2, 200, 000. 

Require - Using both the cost model and fair value model, determine the gain or loss to be recognized in profit or loss for the year ended December 31, 2021, regarding the disposal of the property according to PAS 40 Investment Property.

Reference no: EM132969616

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