CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment potential. The land element of the cost is believed to be $ 400,000 and the building element is expected to have a useful life of 50 years. At December 31, 20x1, local property indices suggest that fair value of the property has risen to $ 1.1M. Required: Show how the property would be presented in the Financial Statements at December 31, 20x1 if CPL adopts: (a) the cost model (b) the fair value models
CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment potential. The land element of the cost is believed to be $ 400,000 and the building element is expected to have a useful life of 50 years. At December 31, 20x1, local property indices suggest that fair value of the property has risen to $ 1.1M. Required: Show how the property would be presented in the Financial Statements at December 31, 20x1 if CPL adopts: (a) the cost model (b) the fair value models
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...
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CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment potential. The land element of the cost is believed to be $ 400,000 and the building element is expected to have a useful life of 50 years. At December 31, 20x1, local property indices suggest that fair value of the property has risen to $ 1.1M.
Required: Show how the property would be presented in the Financial Statements at December 31, 20x1 if CPL adopts:
(a) the cost model
(b) the fair value models
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