Reference no: EM132524500

Question - Jessica Company and its subsidiaries provided the following properties owned by the group:

Land held for undetermined future use 1,000,000

Vacant building to be leased out under an operating lease 2,000,000

Property held for use in production 4,000,000

Property held by a subsidiary, a real estate firm, in the ordinary course of business 3,000,000

Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees 2,500,000

Land leased to a subsidiary under an operating lease 1,500,000

Equipment leased to an unrelated party under an operating lease 500,000

Building under construction for use as investment property 3,500,000

In the consolidated statement of financial position of the parent and its subsidiaries, what total amount should be reported as investment property?

A. 6,000,000

B. 5,500,000

C. 8,000,000

D. 9,000,000