Reference no: EM132699309
Problem 1: Gain or loss from disposal of investment property is the difference between the
Group of answer choices
Option 1: Gross disposal proceeds and carrying amount of the asset.
Option 2: Gross disposal proceeds and fair value of the asset.
Option 3: Net disposal proceeds and carrying amount of the asset.
Option 4: Fair value and carrying amount of the asset.
Problem 2: Which of the following statements is incorrect in determining the fair value of an investment property?
Group of answer choices
Option 1: An entity shall determine the fair value of investment property by deducting transaction cost that may be incurred upon disposal.
Option 2: The fair value of investment property excludes prepaid or accrued operating lease income.
Option 3: If an office is leased on a furnished basis, the fair value of the office generally includes the fair value of the furniture because the rental income relates to the furnished office.
Option 4: The fair value of investment property shall reflect market conditions at the end of the reporting period.