Beched Company and its subsidiaries provided the following properties owned by the group: Land held by Beched for undetermined future use Vacant building, owned by Beched to be leased out under an operating lease Property held by Beched for use in production Property held by a subsidiary of Beched, a real estate firm, in the ordinary course of its business Building owned by subsidiary of Beched and for which the subsidiary Provides security and maintenance services to the lessees Land leased by Beched to a subsidiary under an operating lease Equipment leased by Beched to unrelated party under an operating lease Building under construction by Beched for use as investment property 1,000,000 2,000,000 4,000,000 3,000,000 2,500,000 1,500,000 500,000 3,500,000 In the consolidated statement of financial position of Beched Company and its subsidiaries, what total amount should be shown as investment property?
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- 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 Property held for use in production Property held by a subsidiary, a real estate firm, in the ordinary course of business Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees 2,000,000 4,000,000 3,000,000 2,500,000 Land leased to a subsidiary under an operating lease Equipment leased to an unrelated party under an operating lease Building under construction for use as investment property In the consolidated statement of financial position of the parent and its subsidiaries, what total amount should be reported as investment property? 1,500,000 500,000 3,500,000 A. 6,000,000 B. 5,500,000 C. 8,000,000 D. 9,000,000Lany Co. owned three properties which are classified as investment properties. Details of the properties are as follows: Property 1 Property 2 Property 3 Initial Cost 2,700,000 3,450,000 3,300,000 Fair Value Dec. 31, 2022 3,200,000 3,050,000 3,850,000 Fair Value Dec. 31, 2023 3,500,000 2,850,000 3,600,000 Each property was acquired at the beginning of 2017 with a useful life of 25 years and no residual value. Required: 1. Assuming the company elects to use the cost model, compute the total book value of the investment properties as of December 31, 2023. 2. Assuming the company elects to use the fair value model, compute the net gain (loss) due to changes in fair value during 2023.Eragon Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by Eragon for undetermined use A vacant building owned by Eragon and to be 5,000,000 leased out under an operating lease Property held by a subsidiary of Eragon, a real estate firm, in the ordinary course of the business Property held by Eragon for use in production Building owned by a subsidiary of Eragon and for which the subsidiary provides security 3,000,000 2,000,000 4,000,000 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 Land held for future factory site 6,000,000 3,500,000 Machinery leased out by Eragon to an unrelated party under an operating lease Required: 1. Compute the total investment property that will be shown in the consolidated statement of financial of position of Eragon Company and…
- Investment Property: Recognition: The following are being considered for classification under Investment Property by ABC Retailer Incorporated. Which should be included and what is correct balance for the account? a. Land held for undetermined use – P 4,000,000 b. Manufacturing plant – P 5,000,000 c. Vehicles rented out for additional income – P 3,000,000 d. Land plus building under construction to be rented out under an operating lease – P6,000,000 e. Investment Property, balanceKK owns the following properties as at 31st December 2017: Property: Fair value Land with future use undetermined GH¢ 3,200,000 Factory rented to KK's subsidiary under an operating lease 2,400,000 10 floor office building (fair value is equal per floor) with 3 floors used as the subsidiary's head office and seven floors rented to third parties under an operating lease. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK's accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model. Required: In accordance with IAS 40 Investment Property calculate the carrying amount to be recognized as investment property in KK's consolidated financial statements as at 31 December 2017. 1If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisitionC. Consolidated Total Liabilities at the date of acquisitionD. Consolidated Equity at the date of acquisition
- Dayanara Company owns three properties which are classified as investment properties. Details of the properties are as follows: Initial Cost Fair Value 12/31/2019 Fair Value 12/31/2020 Property 1 2,700,000 3,200,000 3,500,000 Property 2 3,450,000 3,000,000 2,280,000 Property 3 3,300,000 3,900,000 3,400,000 Each property had an estimated useful life of 25 years. The entity’s accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented for the year ended December 31,2020 in the statement of financial position?Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1, 2021, the entity classified as land held for sale. At that date, the carrying amount of the land was P4,000,000 and the balance in the revaluation surplus was P600,000. At the same date, the fair value of the land was estimated at P 4,100,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on December 31, 2021 for P4,200,000. What is the amount of revaluation surplus on December 31, 2021?Investment Property: Recognition: The following are being considered for classification under Investment Property by ABC Retailer Incorporated. Which should be included and what is correct balance for the account? 30. Land held for undetermined use – P 4,000,000 Include Exclude 31. Manufacturing plant – P 5,000,000 Include Exclude 32. Vehicles rented out for additional income – P 3,000,000 Include Exclude 33. Land plus building under construction to be rented out under an operating lease – P6,000,000 Include Exclude 34. Investment Property, balance
- Wingtip, a building company, owns a property which is currently occupied by its subsidiary. How should this property be accounted for in the CONSOLIDATED financial statements? Select one: a. As Investment Property under IAS 40 - Investment Property b. As Inventory under IAS 2 -Inventories c. As a lease under IFRS 16 Leases d. As Property under IAS 16, Property, Plant and Equipment An investment property under IAS 40 can be held for which of the following purposes? Select one: a. For use in the supply of services b. For use as retail premises c. For capital appreciation d. For use as an office If the fair value of an investment property cannot be reliably measured, how should it be recognised? Select one: a. At an estimated amount under IAS 40 b. At value in use c. At cost less depreciation under IAS 16 d. At estimated replacement cost Which of the following could require a property to be accounted for under IAS 40 Investment Property? Select one: a. The commencement of…KK owns the following properties as at 31st December 2017: Property: Fair value (GH¢) Land with future use undetermined 3,200,000 Factory rented to KK’s subsidiary under an operating lease 2,400,000 10 floor office building (fair value is equal per floor) with 3 floors used as the subsidiary's head office and seven floors rented to third parties under an operating lease. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK's accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model. Required: In accordance with IAS 40 Investment Property calculate the carrying amount to be recognized as investment property in KK's consolidated financial statements as at 31 December 2017. 1Among the assets of Lucas Company on December 31, 2021 are the following:Land held for long-term capital appreciation 3,500,000Land held for a currently undetermined future use 5,700,000Building included in inventory 16,600,000Land held for long-term speculation 1,400,000Equipment leased out under an operating lease 500,000Building rented out under finance lease 10,900,000Land owned by the entity and leased out under an operating lease 7.800,000Building owned by the entity and leased out under operating lease 11,800,000Land held for future site 5,600,000Building that is currently vacant but is held to…