What net amount is recognised in pattinson co profit

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Problem 1: On 31 December 20X8 one of Pattinson Co's properties met the criteria to be classified as held for sale. The property was measured under the revaluation model; its fair value at 31 December 20X7 was $25million and after depreciation for the year, its carrying amount at 31 December 20X8 was $24.5 million. At 31 December 20X8 the property had a fair value of $27 million. Selling costs are 4% of fair value. What net amount is recognised in Pattinson Co's profit or loss in the year ended 31 December 20X8 in respect of the property?

Option 1: $500,000 expense

Option 2: $1,080,000 expense

Option 3: $1,580,000 expense

Option 4: $920,000 gain

Reference no: EM132613534

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