Aglipay, Inc. completed the construction of a shopping mall at the end of 2008 for a total cost of P100 million. The mall has an estimated economic life of 25 years. The mall was constructed for the purpose of earning rentals by letting out space in the shopping mall to tenants. The company opted to use the fair value model to measure the shopping mall. An independent valuation expert was used by the company to fair value the shopping mall on an annual basis. According to the fair valuation expert the fair values of the shopping mall at the end of 2009 and 2010 were P120 million and P115 million, How much should be recognized in profit or loss in 2010 as a result of the fair value changes? A. P23,000,000 B. P15,000,000 C. P5,000,000 D. Zero How much is the carrying amount of the shopping mall on December 31, 2010 if Aglipay used the cost model? A. P100,000,000 B. P115,000,000 C. P96,000,000 D. P92,000,000
Aglipay, Inc. completed the construction of a shopping mall at the end of 2008 for a total cost of P100 million. The mall has an estimated economic life of 25 years. The mall was constructed for the purpose of earning rentals by letting out space in the shopping mall to tenants. The company opted to use the fair value model to measure the shopping mall. An independent valuation expert was used by the company to fair value the shopping mall on an annual basis. According to the fair valuation expert the fair values of the shopping mall at the end of 2009 and 2010 were P120 million and P115 million, How much should be recognized in profit or loss in 2010 as a result of the fair value changes? A. P23,000,000 B. P15,000,000 C. P5,000,000 D. Zero How much is the carrying amount of the shopping mall on December 31, 2010 if Aglipay used the cost model? A. P100,000,000 B. P115,000,000 C. P96,000,000 D. P92,000,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Aglipay, Inc. completed the construction of a shopping mall at the end of 2008 for a total cost of P100 million. The mall has an estimated economic life of 25 years. The mall was constructed for the purpose of earning rentals by letting out space in the shopping mall to tenants. The company opted to use the fair value model to measure the shopping mall. An independent valuation expert was used by the company to fair value the shopping mall on an annual basis. According to the fair valuation expert the fair values of the shopping mall at the end of 2009 and 2010 were P120 million and P115 million,
How much should be recognized in profit or loss in 2010 as a result of the fair value changes?
A. P23,000,000
B. P15,000,000
C. P5,000,000
D. Zero
How much is the carrying amount of the shopping mall on December 31, 2010 if Aglipay used the cost model?
A. P100,000,000
B. P115,000,000
C. P96,000,000
D. P92,000,000
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