Which of statements is correct regarding investment property

Assignment Help Accounting Basics
Reference no: EM132700459

Problem 1: The distinguishing characteristic that identifies an investment property from the other assets of an entity is?

a. Changes in fair value of the asset is recognized in surplus or deficit.
b. The property does not derive cash flows separate from the other assets of the entity.
c. Generates separately identifiable cash flows from the other assets of the entity.
d. Earns rental as part of the ordinary operations of the entity.

Problem 2: Which of the following statements is correct regarding investment property?

a. An entity may classify assets other than land and/or building as investment property.
b. During the period, Entity A, a government entity, reclassifies a building that was previously used as office space to investment property. Entity A will recognize a gain if the fair value of the asset exceeds its carrying amount on the date of transfer.
c. When a government entity applies the fair value model to account for its investment properties subsequent to initial recognition, changes in fair values are recognized in surplus or deficit rather than a direct adjustment to equity.
d. Transfers to or from investment property shall be made when, and only when, there is a change in use.

Reference no: EM132700459

Questions Cloud

Outline the amendments required to the financial report : You are the auditor of BUPA Limited, outline the amendments, if any, required to the financial report and provide the reasons for the required action.
Research and critically analyse a cover story : Research and critically analyse a cover story of The Harvard Business Review - Please read cover stories featured in the last four issues of The Harvard
Which investment properties are measured at cost : Under this model, which investment properties are measured at cost less accumulated depreciation and accumulated impairment losses.
What dollar amount should be credited to allowance : The Allowance for Uncollectible Accounts had credit balance of 5,500. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end
Which of statements is correct regarding investment property : Which of statements is correct regarding investment property? An entity may classify assets other than land and/or building as investment property.
Which of measurement bases is acceptable for subsequent : Which of the measurement bases is acceptable for the subsequent measurement of an investment property held by a government entity?
Compute the amount of interest costs capitalized each year : Amounts borrowed and outstanding: $1.7 million borrowed at 10%, specifically for the project. Compute the amount of interest costs capitalized each year
Which of the assets may be classified as investment property : Which of the assets may be classified as investment property? Land held for long-term capital appreciation. / Intangible asset held for lease
Which is select the incorrect statement regarding impairment : Which is Select the incorrect statement regarding impairments of investment properties. Investment properties are subject to impairment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the average direct labor hour rate?

. Assume a manufacturer incurs 2,000,000 hours of direct productive labor in a year at a total direct labor cost of $50,000,000. The total manufacturing indirect expense for the same period is $67,500,000. a. What is the average direct labor hour rat..

  What is the contribution margin per unit

A selling commission of 15% of the selling price is paid on each unit sold. What is the contribution margin per unit? Please explain

  Compute the gain or loss on the sale

On January 2, 2016, Twilight Hospital purchased a $98. Compute the gain or loss on the sale. $ Prepare an incremental analysis of Twilight Hospital.

  Journalize the redemption of the bonds

A $500,000 bond issue on which there is an unamortized discount of $20,000 is redeemed for $475,000. Journalize the redemption of the bonds

  How the method is well suited for counting the inventory

Provide an example of an inventory item under each method and show how the method is well suited for counting the inventory

  Determining the realized gain and recognized gain

She acquired the new property 13 months after the earthquake for $620,000. What is the amount of Kristi's realized gain and recognized gain and the basis in her new property?

  What has been this historical purpose of true and fair view

What is the history of the TFV? How did it come about, where, and when? What has been this historical purpose of the TFV

  Prepare journal entries to record each year-end fair value

Ticker Services began operations in 2009 and maintains long-term investments in available- for-sale securities. The year-end cost and fair values.

  What is push-down accounting

What is push-down accounting? Under what conditions is push-down accounting appropriate? What happens to the differential when push-down accounting is used following a business combination?

  Comnpute the number of units in the ending inventory

The Rose Company sells one product and uses a perpetual inventory system. The beginning inventory consisted of 40 units that cost $10 per unit.

  The annual returns of three shares of stock during the last

the annual returns of three shares of stock during the last seven years are presented in the following tablerequired

  Prepare the journal entry necessary to record this exchange

Lacks commercial substance. Montgomery's year ends on December 31, and depreciation has been recorded through December 31, 2010.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd