Bona Company purchased an investment property on January 1, 2021 for P2,200,000. The property had a useful life of 40 years and on December 31, 2023 had a fair value of P3,000,000. On Ďəcember 31, 2023 the property was sold for net proceeds of P2,900,000. The entity used the cost model to account for the investment property. What amount of gain or loss should be recognized for 2023 regarding the disposal of the property?
Bona Company purchased an investment property on January 1, 2021 for P2,200,000. The property had a useful life of 40 years and on December 31, 2023 had a fair value of P3,000,000. On Ďəcember 31, 2023 the property was sold for net proceeds of P2,900,000. The entity used the cost model to account for the investment property. What amount of gain or loss should be recognized for 2023 regarding the disposal of the property?
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 76P
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