PROBLEM 20-3: Ancillary services Love Hotel completed the construction of a hotel with a swimming pool at a total cost of P105 million at the end of 2015. The estimated useful life of the hotel is 30 years and the company uses the cost model in accounting for its fixed assets. Questions: Based on the above data, answer the following: 1. Assume that Love Hotel Company provides security services for its guest belongings as part. of the service it provides, what amount should be reported as investment property in its statement of financial position as of December 31, 2016? c. P101.5M d. Nil a. Р105M b. P98M 2. Assume Love Hotel Company is an owner managed hotel, what amount should be reported as investment property in its statement of financial position as of December 31, 2016? a. P105M b. P98M с. Р101.5M d. Nil

PROBLEM 20-3: Ancillary services Love Hotel completed the construction of a hotel with a swimming pool at a total cost of P105 million at the end of 2015. The estimated useful life of the hotel is 30 years and the company uses the cost model in accounting for its fixed assets. Questions: Based on the above data, answer the following: 1. Assume that Love Hotel Company provides security services for its guest belongings as part. of the service it provides, what amount should be reported as investment property in its statement of financial position as of December 31, 2016? c. P101.5M d. Nil a. Р105M b. P98M 2. Assume Love Hotel Company is an owner managed hotel, what amount should be reported as investment property in its statement of financial position as of December 31, 2016? a. P105M b. P98M с. Р101.5M d. Nil

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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