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What is the gain to be recognized for regarding disposal

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Reference no: EM132612807

The company purchased an investment property on January 1, 2014 for a cost of ?2,200,000.The property had a useful life of 40 years and on December 31, 2016 had a fair value of ?3,000,000. On December 31,2016 the property was sold for net proceeds of ?2,900,000. The entity used the cost model to account for the investment property.

Problem 1: What is the gain or loss to be recognized for 2016 regarding the disposal of the investment property?

A. ?810,000 gain

B. ?700,000 gain

C. ?100,000 loss.

D. ?865,000 gain

Reference no: EM132612807

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