Accounting · IAS 40 Investment Property and IAS 16 PPE
On 1 January 20X8 City Co vacated its head office and started advertising the property for rent. It secured a tenant on 1 April 20X8 and they occupied the property immediately. On 1 January 20X8 the building's carrying amount was $1,920,000 and it had a remaining useful life of 40 years. The property's fair value was $2,600,000 at 1 January 20X8, $2,900,000 at 1 April 20X8, and $3,200,000 at 31 December 20X8. City Co adopts the cost model for property, plant and equipment and the fair value model for investment property. What amount should City Co recognise in the 20X8 statement of profit or loss as a fair value gain in relation to the property?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1$1,292,000
- 2$1,200,000
- 3$800,000✓
- 4$300,000
Correct answer
$800,000
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice IAS 40 Investment Property and IAS 16 PPE MCQs →Want more practice questions on IAS 40 Investment Property and IAS 16 PPE?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · IAS 40 Investment Property and IAS 16 PPE