What is the net amount to be presented in the statement

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Question - On May 3, 2012, Rhad Company completed the construction of a Building at a total cost of P14M. The building is estimated to have an estimated residual value of P1M and useful life of 10 years. The company uses cost model in their valuation of PPE and uses straight line depreciation method. On December 31, 2014, the company performed impairment test and impairment loss of P480,000 was recognized. On October 31, 2016, the Building was reclassified to investment property as the property will rented out under an operating lease. No change in useful life and residual value is expected after the change. The company's policy on investment property is to measure it using fair value model. On the same date, the fair value of the asset was determined to be P10,050,000. The fair value of the asset on December 31, 2016 and 2017 was P11,000,000 and P11,450,000, respectively. During the first quarter of 2018, the company decided to use the building as their head office and factory site. Therefore, on May 1, 2018, the investment property was reclassified back to PPE when the fair value was P9,500,000. The company's reporting period is December 31.

Required - Based on the above data, answer the following:

1. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2012?    

P1,400,000

P933,333

P1,300,000

P866,667

2. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2014?    

P1,780,000

P1,300,000

P-0-

P480,000

3. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2015?    

P-0-

P1,370,909

P1,234,545

P1,300,000

4. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2016?    

P4,238,788

P1,231,212

P2,181,212

P3,210,000

5. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2017?    

P-0-

P1,645,455

P2,095,455

P450,000

6. What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2018?    

P2,322,222

P-0-

P4,272,222

P1,950,000

Reference no: EM132945032

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