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What is the expense recognized in profit or loss

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Q1) Blep Company has a single investment property which had an original cost of P5,800,000 on January 1, 2018. On acquisition, the property had a useful life of 40 years.

On December 31, 2020, the fair value was P6,000,000 and on December 31, 2021, the fair value was P5,900,000.

What is the expense recognized in profit or loss for 2021 under the fair value model and cost model, respectively?

a. P145,000; P100,000

b. P147,500; P145,000

c. P100,000; P145,000

d. P100,000; P147,500

Q2) Leo Company acquired a building on January 1, 2021 for P25,000,000. At that date, the building has a useful life of 50 years. The fair value of the building was P28,000,000 on December 31, 2021. The building was appropriately classified as an investment property and Leo is using the fair value model in accounting the investment property.

What amount shall be used in the statement of financial position on December 31, 2021?

a. P27,440,000

b. P24,500,000

c. P28,000,000

d. P25,000,000

Reference no: EM132932976

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