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Question - Bergs acquired a building on January 1, 2018 for P9,000,000. At that date, the building had a useful life of 20 years and Bergs classified this building as owner-occupied property.
On July 1, 2021, the new building constructed for Bergs became ready for occupation. As a result, the company vacated its old building and decided to lease it out to third parties. At the time of reclassification, the fair value of the building was P7,000,000. The company has a policy of measuring all its investment properties at fair value. How much should be recognized in profit or loss for the year 2021 as a result of the transfer?
part 2 after establishing their companys fiscal year-end to be october 31 natalie and curtis began operating cookie amp
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