What is the carrying value of the property

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Question - Jude Corporation acquired a building on January 1, 2021. The acquisition cost was P5,000,000 payable at the rate of PIM at the beginning of each year starting January 1, 2021. The company paid option money totaling P400,000, P85,221 of which is attributed to real properties not acquired. The company also paid property taxes in arrears as of January 1, 2021 at P147,872. The prevailing market rate of interest for transaction is 12%. The building is estimated to have useful life of 25 Years. The property was appraised at the end of each year as follows:

 

2021

2022

2023

Appraised values

P4,600,000

P4,100,000

P4,300,000

How much should the property be initially recognized?

What is the carrying value property of the as of December 31, 2022, assuming that the building is an owner-occupied property?

What is the carrying value of the property as of December 31, 2023, assuming that the building is an investment property under the cost method?

Reference no: EM133130140

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