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What is the gain to be recognized

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Question - Robust company purchased an investment property on January 1, 2019 at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2020 had a fair value of P4,800,000. On December 31, 2020 the property was sold for net proceeds of P4,500,000.

The property had a useful life of 20 years and on December 31, 2020 had a fair value of P4,800,000.

On December 31, 2020 the property was sold for net proceeds of P4,500,000.

The entity used the cost model to account for the investment property.

What is the gain to be recognized for 2020 regarding the disposal of the investment property?

a. 900,000

b. 500,000

c. 800,000

d. 700,000

Reference no: EM132542533

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