Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential

a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential

Accounting

a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m.
Requirement
Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the:
(i) Cost model; and
(ii) Fair value model

Option 1

Low Cost Option
Download this past answer in few clicks

2.84 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE