How much is the carrying value of the investment

Assignment Help Managerial Accounting
Reference no: EM132960301

On January 2, 2021, Patrick Company has an investment property acquired at cost of P3,000,000 including directly attributable transaction cost of P 100,000. Estimated useful life of the property is 20 years using a straight-line method. On December 31, 2021, the fair value of the property is P3,200,000. Estimated cost to sell is P50,000.

Problem 1: What should be the carrying value of the investment at the end of 2021 using the cost model?

a. 2,755,000

b. 2,650,000

c. 3,150,000

d. 3,200,000

Problem 2: How much is the carrying value of the investment at the end of 2021 using the fair value model?

a. 2,755,000

b. 2,850,000

c. 3,150,000

d. 3,100,000

Reference no: EM132960301

Questions Cloud

What amount should the property be initially recorded : The property was reclassified to property, plant and equipment. At what amount should the property, plant and equipment be initially recorded?
What is the amount of dependent care credit : What is the amount of dependent care credit for a couple with two children where they spend $5,000 for dependent care
Two types of sexual harassment found in the workplace : Define and discuss in detail the two types of sexual harassment found in the workplace.
Reasons for joining a trade union in a south african : List six reasons for joining a trade union in a South African perspective.
How much is the carrying value of the investment : How much is the carrying value of the investment at the end of 2021 using the fair value model? On January 2, 2021, Patrick Company has an investment property.
What is the net effect on the profit or loss for six months : If the company uses the cost model, what is the net effect on the profit or loss for the six months ended December 31, 2021 in relation to the investment
What is predictive analytics : What is predictive analytics? How can it be applied to improve performance in an organization? What is the importance of identifying key metrics for driving qua
Assess the value of selected theoretical management : Critically assess the value of selected theoretical management and leadership related frameworks for the responsible practitioner.
Social impacts of a strike and lockout : What do you think are the social impacts of a strike and lockout respectively? Do you think that local coverage of a lockout looks favorably on an employer or d

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the margin of safety in dollars

Unit variable expenses total $50. The break-even sales in units is 4,000 and budgeted sales in units is 9,600. What is the margin of safety in dollars

  What direct labour cost should have been incurred

What direct labour cost should have been incurred in the manufacture of the 20,000 units of the Jogging Mate?

  What the operating results at the end of the year

What the operating results At the end of the year? Depreciation expense $1,900 Interest expense $450 Dividends paid $500 At the beginning of the year

  Figure out the break even cost in dollars for oil changes

PDQ Repairs has 200 auto-maintenance service outlets nationwide. Figure out the break even cost in dollars for oil changes and break repair

  What the controllable variance of beacon company is

The company uses a two-way analysis of overhead variances. The controllable variance of Beacon Company is? Beacon Company manufactures various types of plastic

  What are forecasted cash receipts in april

All sales are made on credit and are collected 60% in the month of sale, and 40% the month following. What are forecasted cash receipts in April?

  Find what amount of fixed overhead deferred to period

Find what amount of fixed overhead is deferred to a future period? Obama Company sells its product for $25 per unit. During 2020, it produced 20500 units

  Find what the margin of safety in dollars is

If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is? $250,000./ $440,000.

  Should the company make or buy the valve

Should the company make or buy the valve?

  How would the divisions be ranked

How would the divisions be ranked (from best to worst performance) if the evaluation were based on residual income?

  Develop an equation for total costs of operation

Using the hi-lo method, develop an equation for the behavior of housekeeping costs, in the form Y = a + bX. Develop an equation for total costs of operation

  Determine the internal rate of return on the investment

$36,000 per year in excess of its cash operating costs. Determine the internal rate of return on the investment in the new limousine.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd