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Investment Property Practical Accounting

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Ashley Nicole Heredia
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30 views4 pages

Investment Property Practical Accounting

Uploaded by

Ashley Nicole Heredia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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PROBLEM 1:

Cost of inventory property 20,000,000


Less:Residual value -2,000,000
Depreciable amount 18,000,000
Annual depreciation ₱ 900,000.00

Fair value - December 31, 2010 26,000,000


Less: Cost - January 01, 2010 -18,000,000
Gain from change in fair value - 2010 ₱ 8,000,000.00

PROBLEM 2:
Cost 14,000,000
Less: Residual value 1,000,000
Depreciable cost 13,000,000
Divided by: Useful life 10
Annual depreciation 1300000
Months outstanding 8 / 12
Depreciation - 2012 866,667

Depreciation 1,300,000
Impairment loss 480,000
Amount to be presented in the stateme 1,780,000

Cost 14,000,000
Less: Accumulated depreciation -3,466,667
Carrying value - before impairment 10,533,333
Impairment loss 480,000
Carrying value - after impairment 10,053,333
Less: Residaul value -1,000,000
Depreciable amount 9,053,333
Divide by: Useful life 88 months (120-32)
Multiply: Number of months 12
Depreciation - 2015 1,234,545

Cost 14,000,000
Less: Accumulated depreciation -3,466,667
Carrying value - before impairment 10,533,333
Impairment loss 480,000
Carrying value - after impairment 10,053,333
Depreciation - 2015 1,234,545 (10,053,333 - 1,000,00 /88*12)
Depreciation - 2016 1,028,788 (10,053,333 - 1,000,00 /88*10)
Carrying value - Oct 2016 7,790,000

Depreciation - 2016 1,028,788 10,050,000


Gain on transfer 2,260,000 -7,790,000
Unrealized gain - change in fair value 950,000 2,260,000
Net amount - Statement of Comprehens 4,238,788
(11,000,000 - 10,050,000)

Fair value - 12/31/2017 11,450,000


Fair value - 2016 -11,000,000
Gain on change of fair value 450,000

Fair value - May 01, 2018 9,500,000


Carrying value - May 01, 2018 -11,450,000
1,950,000
Depreciation - 2018 2,322,222
Net amount - Statement of Comprehens 4,272,222

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