Reference no: EM132839618

A parent 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 subsidiary and the subsidiary provides security and maintenance services to the leases 2,500,000

Land lease to a subsidiary under 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

Problem 1: In the consolidated statement of financial position of the parent and its subsidiaries, what total amount should be reported as investment property?

a. 6,500,000

b. 5,500,000

c. 8,000,000

d. 9,000,000

Problem 2: What total amount should be included in property plant and equipment in the consolidated statement of financial position of parent and its subsidiaries?

a. 9,500,000

b. 4,000,000

c. 6,000,000

d. 4,500,000