Rhino Company, a real estate entity, had a building with a The building was used as offices of the entity's administrative carrying ámount of P20,000,000 on December 31, 2021 The building was used as offices of the entity's administrative staff. On December 31, 2021, the entity intended to rent out the building to independent third parties. The staff will be moved to a new building purchased early in 2021. On December 31, 2021, the original building had a fair value of P35,000,000. On December 31, 2021, the entity also had land that was held for sale in the ordinary course of business. The land had a carrying amount of P10,000,000 and fair value of P15,000,000 on December 31, 2021. On such date, the entity decided to hold the land for capital appreciation. The accounting policy is to carry all investment property at fair value.

Rhino Company, a real estate entity, had a building with a The building was used as offices of the entity's administrative carrying ámount of P20,000,000 on December 31, 2021 The building was used as offices of the entity's administrative staff. On December 31, 2021, the entity intended to rent out the building to independent third parties. The staff will be moved to a new building purchased early in 2021. On December 31, 2021, the original building had a fair value of P35,000,000. On December 31, 2021, the entity also had land that was held for sale in the ordinary course of business. The land had a carrying amount of P10,000,000 and fair value of P15,000,000 on December 31, 2021. On such date, the entity decided to hold the land for capital appreciation. The accounting policy is to carry all investment property at fair value.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 55P

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