Reference no: EM133072894
Question - Silver Fang Company, a real estate entity, had a building with a carrying amount of P 20,000,000 on December 31, 2020. The building was used as offices of the entity's administrative staff. On December 31, 2020, the entity intended to rent out the building to independent third parties. The staff will be moved to a new building purchased early in 2020. On December 31, 2020, the original building had a fair value of P 40,123,000. On December 31, 2020, the entity also had land that was held for sale in the ordinary course of business. The land has carrying amount of P 18,500,000 and fair value of p 22,965,000 on December 31, 2020. On such date, the entity decided to hold the land capital appreciation. The accounting policy is to carry all investment property at fair value.
Required -
1. On December 31, 2020, what amount should be recognized in revaluation surplus as a result of transfer of the building to investment property?
2. On December 31, 2020, what amount should be recognized in the income statement as a result of transfer of the land to investment property?
3. Prepare the journal entry to record the transfers to investment property.
|
What is the annual impact of outsourcing payroll
: The computers would remain and be used for other tasks if payroll is outsourced. What is the annual impact of outsourcing payroll
|
|
What is the irr of the leasing option
: ABC, a tax-exempt organization, needs a new truck to haul donations to its warehouse. The firm believes, based on its analysis, that this investment adds value.
|
|
Characteristics of china government
: Discuss two occasions when the national government of the People's Republic of China utilized Keynesian-style countercyclical fiscal stimulus to support China's
|
|
Calculate the price to yield an investor
: Calculate the price to yield an investor 10% per annum compounding half yearly (correct to the nearest cent).
|
|
What amount should be recognized in the income statement
: On December 31, 2020, what amount should be recognized in the income statement as a result of transfer of the land to investment property
|
|
Calculate the annual compound growth rate
: Calculate the annual compound growth rate of the house price since the house was sold to Mark and Ann Kington (since 2000) until the house was sold in July 2020
|
|
Thinking about building their first investment portfolio
: Your friend is thinking about building their first investment portfolio, but has never taken a finance class. Give them your top tips, in bullet-points.
|
|
What market rate did the company need to achieve
: Question - A few decades ago, Sterling Assets, LLC wanted a real rate of return of 11% annually. What market rate did the company need to achieve
|
|
What is the company free cash flow
: A company has an EBIT of P30,000,000, depreciation of P5,000,000, and a 40% tax rate. It needs to spend P10,000,000 on new fixed assets and P15,000,000 to incre
|