Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P400,000, equal to recoverable amount. If Wah Co. decides to transfer the investment property to owner-occupied property, the transfer will most likely result to the reporting of which of the following in Wah's statement of profit or loss? c. P200,000 unrealized loss d. P600,000 loss on transfer a. P200,000 loss on transfer b. P200,000 impairment loss

Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P400,000, equal to recoverable amount. If Wah Co. decides to transfer the investment property to owner-occupied property, the transfer will most likely result to the reporting of which of the following in Wah's statement of profit or loss? c. P200,000 unrealized loss d. P600,000 loss on transfer a. P200,000 loss on transfer b. P200,000 impairment loss

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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