How much should be recognized in profit or loss

Assignment Help Accounting Basics
Reference no: EM133190101

Question - Bergs acquired a building on January 1, 2018, for 9,000,000. At that date, the building had a useful life of 20 years, and Bergs classified this building as owner-occupied property.

On July 1, 2021, the new building constructed for Bergs became ready for occupation. As a result, the company vacated its old building and decided to lease it out to third parties. At the time of reclassification, the fair value of the building was 7,000,000. The company has a policy of measuring all its investment properties at fair value.

Required - How much should be recognized in profit or loss for the year 2021 as a result of the transfer?

A. None

B. 650,000 loss

C. 425,000 loss

D. 425,000 gain

Reference no: EM133190101

Questions Cloud

How much should be recognized in profit or loss : The company has a policy of measuring all its investment properties at fair value. How much should be recognized in profit or loss for the year 2021 as a result
Point out ethical failures, triumphs of Volkswagen : Point out ethical failures, triumphs, and disagreements throughout, Who was in charge, what decisions happened under their reign
What amount of retained earnings appearing on balance sheet : On January 01, 2019, Pony Inc. purchased 100% of the outstanding voting shares of Sony Inc. for $200,000. What amount of Retained Earnings appearing
Analyze competitors who may pose a strategic threat : Analyze competitors who may pose a strategic threat by identifying their financial strengths and weaknesses, and how these might influence strategic intent
How much should be recognized in profit or loss : At the time of reclassification, the fair value of the building was 7,000,000. How much should be recognized in profit or loss for the year 2021
Understanding business-to-consumer : Business-to-consumer (B2C) is among the most popular and widely known sales models. Michael Aldrich first utilized the idea of B2C in 1979, who used television
How much is the dividend income to be recognized : On November 1, 2021, Bergs declared its inventory as property dividends. How much is the dividend income to be recognized in 2021
Why correlation examples are positive and negative : Consider your work environment, domain of interest, or everyday life, and identify two variables that are positively correlated and two variables that are negat
Does information technology matters : Does Information Technology matters? List & Explain at least three Careers in Information Systems.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd