Solution-Explain the classification of the building

Explain the classification of the building

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Reference no: EM132962841

Problem 1: If a firm provides significant ancillary services to tenants in its property:

a) The service fees should be capitalized

b) The property can be classified as owner-occupied property, rather than an investment property.

c) The property can be classified as investment property, rather than as owner- occupied property.

d) The ancillary services are classified as investment property, rather than as owner- occupied property.

Problem 2: Aisha Bhd owns a building that it rents out to Berjaya Bhd under operating lease in return for rental payments. Explain the classification of the building.

a) The building is classified as an item of investment property by Berjaya Bhd.

b) The building is classified as an item of property, plant and equipment by Berjaya Bhd.

c) The building is classified as an item of investment property by Aisha Bhd.

d) The building is classified as an item of property, plant and equipment by Aisha Bhd.

Reference no: EM132962841

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Explain the classification of the building

Reference no: EM132962841

Reference no: EM132962841

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