How much is gain to be recognized in profit for jose corp

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Problem 1: Jose Corporation's accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One of its investment properties was measured at $8,000,000 on December 31, 2020. The property had been acquired on January 1, 2020 for a total of $7,600,000, made up of $6,900,000 paid to the vendor. $300,000 paid to the local authority as a property transfer tax and $400,000 paid to professional advisers. The useful life of the property is 40 years. How much is the gain to be recognized in profit or loss for the year ended December 31, 2020 in respect of the investment property?

Reference no: EM132864565

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