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Question - Company A owns a building purchased on January 1, 2016 for P25,000,000, with an estimated useful life of 25 years. The building was used as head office for the company.
In 2020, the company transferred its head office and decided to lease out the old building. Tenants started to occupy the building by the end of 2020, thus, on December 31, 2020, the company reclassified the building as investment property carried at fair value.
The fair value on the date of reclassification was P21,250,000.
Determine amount recognized in 2020 statement of comprehensive income as a result of the transfer from owner-occupied property to investment property.
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