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What is the gain to be recognized regarding the disposal

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Reference no: EM132839620

Problem 1: An entity 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 entity used the cost model to account for investment property. What is the gain to be recognized for 2020 regarding the disposal of the property?

a. 900,000

b. 500,000

c. 800,000

d. 700,000

Reference no: EM132839620

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