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How much is the carrying amount of the investment property

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Problem - Marigold Company completed the construction of a building at the end of 2019 for a total cost of P40,000,000. The building is estimated to be economically useful for 25 years. The building was constructed for the purpose of earning rentals under operating leases. The tenants began occupying the building after its completion.

The company opted to use the fair value model to measure the building. An independent valuation expert was used by the company to estimate the fair value of the building on an annual basis. According to the expert the fair values of the building are:

Year - Fair Value

2019 - 42,000,000

2020 - 47,200,000

2021 - 46,400,000

If Marigold is using the cost model, how much is the carrying amount of the investment property on December 31, 2020?

Reference no: EM132728960

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