Them Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses the cost model for its investment property and uses straight-line method. What is the carrying value of the investment property at Dec. 31, 2021?
Them Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses the cost model for its investment property and uses straight-line method. What is the carrying value of the investment property at Dec. 31, 2021?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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Them Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses the cost model for its investment property and uses straight-line method.
What is the carrying value of the investment property at Dec. 31, 2021?
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