Valix Finacc vol 1 Problem 13-15

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 13-15

Cost model

2008     Depreciation                                                                         1,800,000           

                  Accumulated depreciation                                                                    1,800,000

                                                                                                             

2009     Depreciation                                                                         1,800,000

                  Accumulated depreciation                                                                    1,800,000

2010     Depreciation                                                                         1,800,000

                  Accumulated depreciation                                                                    1,800,000

Fair value model

                                               

2008     Investment property                                                              5,000,000           

                  Accumulated depreciation                                                                    5,000,000

2009     Loss from change in fair value                                                          2,000,000

                  Accumulated depreciation                                                                    2,000,000

2010     Investment property                                                              7,000,000

                  Gain from change in fair value                                                               7,000,000