Reference no: EM132759758

Eragon Company and its subsidiaries own the following properties at year-end:

Land held by Eragon for undetermined use            P5,000,000

A vacant building owned by Eragon and to be leased out under an operating lease   3,000,000

Property held by a subsidiary of Eragon, a real estate firm, in the ordinary course of business  2,000,000

Property held by Eragon for use in production 4,000,000

Building owned by a subsidiary of Eragon and for which the subsidiary provides security and maintenance services to the lessees 1,500,000

Land leased by Eragon to a subsidiary under an operating lease 2,500,000

Property under construction for use as investment property  6,000,000

Land held for future factory site     3,500,000

Machinery leased out by Eragon to an unrelated party under an operating lease  1,000,000

Required

Problem 1: What is the total investment property to be reported in the consolidated statement of financial position of the parent and subsidiaries?

Problem 2: What total amount should be considered as owner-occupied property and included in property, plant and equipment in the consolidated statement of financial position?