User Account

All Pages

How much should be recognized in the profit or loss

Assignment Help Accounting Basics
Reference no: EM132702436

Question - Diffun, Inc. owns a building purchased on January 1, 2005 for P50 million. The building was used as the company's head office. The building has an estimated useful life of 25 years. In 2009, the company transferred its head office and decided to lease out the old building. Tenants began occupying the old building by the end of 2009. On December 31, 2009, the company reclassified the building as investment property to be carried at fair value. The fair value on the date of reclassification was P42 million. How much should be recognized in the 2009 profit or loss as a result of the transfer from owner-occupied to investment property?

a. P500,000

b. P8,000,000

c. P0

d. P2,000,000

Reference no: EM132702436

Questions Cloud

Penetration testing is simulated cyberattack : Penetration testing is a simulated cyberattack against a computer or network that checks for exploitable vulnerabilities.
Which alternative can maximize expected economic benefits : Develop a decision tree for alternatives and make recommendation to Indian government that which alternative can maximize expected economic benefits?
Determine the inventory cost : Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method
Explain the controls that would be required to account : Explain the controls that would be required to account for inventory movements at the local store level and in head office
How much should be recognized in the profit or loss : How much should be recognized in the 2009 profit or loss as a result of the transfer from owner-occupied to investment property
Prepare the journal entries to be recorded by Kangaroo Ltd : Kangaroo Ltd must provide maintenance for the Inventory for the first 12 months. Prepare the journal entries to be recorded by Kangaroo Ltd
What is the rate of return realized by Mary from the sale : Mary then sold the T-bill 30 days later on June 21st when the rate was at 2.05%. What is the rate of return realized by Mary from the sale
What should be the net cash provided by operating activities : What should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2014
Create a way to track project issues : Create a way to track project issues. Diagram and describe the vendor status update process.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the direct costs and indirect costs

Question - Consider education as a product, what are the direct costs and indirect costs to a university in education a student

  Conduct some online research and locate a job requirement

Conduct some online research and locate a job requirement for a position that is local to you. Is a specific degree level required for this position? If so, what degree is required?

  What amount of interest should be capitalized to the project

Assuming that the asset is placed into service on October 1, what amount of interest should be capitalized to the project on June 30

  Demonstrating a knowledge of accounting concepts

Managers need to know enough about accounting concepts and their applications, that they can understand and interpret financial data and make the best decisions possible.

  How much is the cost of the deferred payment

You want to buy a mobile phone and you opted for the option in which you will be paying Php 3,000. How much is the cost of the deferred payment

  How to prepare entries that are necessary at april

Prepare entries that are necessary at April 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

  Capital grill has budgeted the following costs for a month

capital grill has budgeted the following costs for a month in which 2500 colby steak dinners will be produced and sold

  Prepare the current asset section of booboos balance sheet

BooBoo s Home Health Care has the following adjusted account balances at April 30, 2017. Prepare the current asset section of BooBoos balance sheet

  Indicate the balances in the three stockholders equity

on october 1 chile corporations stockholders equity is as follows.common stock 4 par

  Find the total amount of avoidable costs

Han Products manufactures 30,000 units of part S-6 each year for use on its production line. What is the total amount of avoidable costs

  Empirical studies of the dividend theories

What results have empirical studies of the dividend theories produced? How does all this affect what we can tell managers about dividend payouts?

  What is the approximate inventory on February

A fire destroys all of the merchandise of Cheyenne Company on February 10, 2017. What is the approximate inventory on February 10, 2017

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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