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Investment Property - DQ
Investment Property - DQ
From
inventories?
2. Give instances when an asset is classified "from" and "into" investment property.
Formulate entries for their reclassification "from" and "into" investment property.
The reclassification process involves two scenarios: "From" and "Into" Investment
Property. In the case of reclassification "From" Investment Property, assets are
transferred to either owner-occupied property or inventories. The corresponding entry
for this transaction includes debiting Investment Property and crediting either Owner-
Occupied Property or Inventories. On the other hand, in reclassification "Into"
Investment Property, an asset is shifted from owner-occupied property or inventories to
investment property. The entry for this transaction comprises debiting Investment
Property and crediting either Owner-Occupied Property or Inventories. These
reclassification entries are crucial for accurately reflecting changes in the nature and
use of assets within financial records.
f. Building that is being constructed or developed for future use as owner occupied
h. Building that is being constructed or developed to be leased out under finance leases
i. Condominium building that is being constructed intended for sale in the ordinary
course of business
j. Land subdivided into smaller lots intended for sale in the ordinary course of business
o. Building being leased out under operating leases, an insignificant portion of which is
held as headquarters for security, maintenance and administrative purposes
p. Land and building owned by Mendez and occupied by the subsidiary, which leases
the property from Mendez
q. Property interest in a building leased from Ayala Corporation that is being occupied
by the company as sales outlet
r. Property interest in a building leased from Vista Corporation that is being subleased to
others under operating leases.
s. Property interest in a building leased from Jordan Property Management that is being
subleased to others and from which significant rental income is derived.
Yes,
A, c, e, g, o, s
No,
B, d, f, h, I, j, k, l, m, n, p, q, r