How much should be recognized in profit or loss

Assignment Help Accounting Basics
Reference no: EM133190105

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?

Reference no: EM133190105

Questions Cloud

How much interest will be paid annually on these bonds : On July 1, 2019, $9.5 million face amount of 7%, 10-year bonds were issued. How much interest will be paid annually on these bonds
Developing a global web strategy : Your company manufactures and sells tennis rackets and would like to start selling outside the United States. You are in charge of developing a global Web strat
Laissez-faire capitalism : Do we have a "level playing field" in Laissez-Faire capitalism? For that matter, do we have Laissez-Faire capitalism? If the answer to both questions is: "No,"
Recommend a strategy the company : The answer should have a vivid picture in the mind of your reader that tells them who the customer is. The customer(s) selected should make sense with the subje
How much should be recognized in profit or loss : 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
Point out ethical failures, triumphs of Volkswagen : Point out ethical failures, triumphs, and disagreements throughout, Who was in charge, what decisions happened under their reign
What amount of retained earnings appearing on balance sheet : On January 01, 2019, Pony Inc. purchased 100% of the outstanding voting shares of Sony Inc. for $200,000. What amount of Retained Earnings appearing
Analyze competitors who may pose a strategic threat : Analyze competitors who may pose a strategic threat by identifying their financial strengths and weaknesses, and how these might influence strategic intent
How much should be recognized in profit or loss : At the time of reclassification, the fair value of the building was 7,000,000. How much should be recognized in profit or loss for the year 2021

Reviews

Write a Review

Accounting Basics Questions & Answers

  Oct 31 the company earned revenues of 472500 and incurred

part 2 after establishing their companys fiscal year-end to be october 31 natalie and curtis began operating cookie amp

  Actual fixed overhead for a company during march was 77612

actual fixed overhead for a company during march was 77612. the flexible budget for fixed overhead this period is 78000

  Prepare the necessary general journal entry

Prepare the necessary general journal entry for June 17, Received the goods from Shelby. Prepare the necessary general journal entry for June 25.

  What amount of goodwill should JZ record

On 12/31/15, JZ Corporation paid $9,150,000 to acquire XYZ. What amount of goodwill should JZ record as a result of this purchase

  What is the NPV of the acquisition under the cash offer

The values of the two companies as separate entities are $15 million and $7 million, What is the NPV of the acquisition under the cash offer

  What the terminal value based on a perpetuity

Forecasted earnings in years one to three are equal to ROE multiplied by beginning book value. What the terminal value based on a perpetuity

  Compute the basic earnings per share

Common shareholders received $2 per share dividends after preferred dividends were paid in 2013. Compute the basic earnings per share

  Describing how the issues would affect auditor report

Write a memorandum an essay describing how the above issues would affect Bernstein and Starkey's independent auditor's report which is to be issued on March

  Calculate the restaurant net present value

Use Excel or a similar spreadsheet application to calculate the restaurant's internal rate of return over the franchise's 15-year life

  During 2010 yoder enterprises generated revenues of 60000

during 2010 yoder enterprises generated revenues of 60000. the companys expenses were as follows cost of goods sold of

  On june 5 2013 dan purchased and placed in service a

on june 5 2013 dan purchased and placed in service a seven-year class asset costing 550000. determine the maximum cost

  Compute book equivalent of taxable income

Jones Company reported pretax book income of $402,000. Compute book equivalent of taxable income

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