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How much should be recognized in the profit or loss

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Q1. Bergs Company purchased an investment property on January 1, 2018 for P2,200,000. The property had a useful life of 40 years and on December 31, 2020 had a fair value of P3,000,000. On December 31, 2020, the property was sold for net proceeds of P2,900,000. The entity used the cost model to account for the investment property. What is the gain to be recognized for the year ended December 31, 2020 regarding the disposal of the property?

Q2. Bergs Company owns a building purchased on January 1, 2018 for P50 million. The building was used as the company's head office. The building has an estimated useful life of 25 years. In 2022, the company transferred its head office and decided to lease out the old building. Tenants began occupying the old building. On December 31,2022, 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 2022 profit or loss as a result of the transfer from owner -occupied to investment property?

Reference no: EM133180982

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