Reference no: EM132542684

Question - Classic Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards:

Land held by the parent for undetermined use 5,000,000

A vacant building owned by the parent and to be leased out under an operating lease 3,000,000

Property held by a subsidiary, a real estate firm, in the ordinary course of business 2,000,000

Property held by the parent for use in production 4,000,000

Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees 1,500,000

Land leased by the parent to a subsidiary under an operating lease 2,500,000

Property under construction for use as investment property 6,000,000

Land held for future factory site 3,500,000

Machinery leased out by the parent to an unrelated party under an operating lease 1,000,000

Required -

1. Compute the total investment property that should be reported in the consolidated financial position of Classic Company and its subsidiaries.

2. Indicate the classification of the assets that are excluded from investment property.