How much should be recognized in the 2025 profit

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Reference no: EM132915903

PROBLEM :BOYLE CORP. owns a building purchased on January 1, 2021 for Php 100,000,000.

The building was used as the company's home office. The building has an estimated life of 25 years.

In 2025, the company transferred its home office and decided to lease the old building. Tenants began occupying the old building by the end of 2025. On December 31, 2025, BOYLE reclassified the building as investment property. The fair value on the date of reclassification was Php 86,000,000.

Required: Answer the following:

A. If the investment property is to be carried using cost model, how much should be recognized in the 2025 profit or loss as a gain or loss on transfer from owner-occupied to investment property?

B. If the investment property is to be carried using cost model, how much should be recognized in the 2025 OCI as a gain or loss on transfer from owner-occupied to investment property?

C. If the investment property is to be carried using fair value model, how much should be recognized in the 2025 profit or loss as a gain or loss on transfer from owner-occupied to investment property?

D. If the investment property is to be carried using fair value model, how much should be recognized in the 2025 OCI as a gain or loss on transfer from owner-occupied to investment property?

Reference no: EM132915903

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