An investment property is defined as property held to earn rentals or for capital appreciation or both. Which of the following is NOT an investment property? Oa. Land held for undecided future use Ob. Building leased out under an operating lease Oc. Property leased to another entity under a finance lease O d. Land held for long-term capital appreciation

An investment property is defined as property held to earn rentals or for capital appreciation or both. Which of the following is NOT an investment property? Oa. Land held for undecided future use Ob. Building leased out under an operating lease Oc. Property leased to another entity under a finance lease O d. Land held for long-term capital appreciation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. Which of the following qualifies for classification as an investment property? a. Property that is currently being developed for future use as investment property b. Property that is leased out to another entity under a finance lease c. Building being rented from another entity and leased out under various operating sub-leases d. Investment property that is currently being developed for future use as owner-occupied property
Investment property includes all of the following, EXCEPT:A. For sale in the ordinary course of businessB. Land held for capital appreciationC. For use in production of goods and services and for amdinistrative purposesD. Land held for currently undetermined use
No.1: answer the following Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use. d. Property owned by the entity and leased out to another entity under a finance lease. All of the following do not qualify as investment property, except a. Machineries that are held for lease b. Hotels or motels c. Agricultural land purchased for appreciation purposes d. Equipment purchased for an indeterminate purpose A property is classified as investment property if a. it is leased out under a finance lease. b. the owner-occupied portion of the property is significant. c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d. it is rented between a parent entity and a…
1. Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use. d. Property owned by the entity and leased out to another entity under a finance lease. 2. All of the following do not qualify as investment property, except a. Machineries that are held for lease b. Hotels or motels c. Agricultural land purchased for appreciation purposes d. Equipment purchased for an indeterminate purpose 3. A property is classified as investment property if a. it is leased out under a finance lease. b. the owner-occupied portion of the property is significant. c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d. it is rented between a parent entity and a subsidiary and…
Where the payment of an investment property is deferred beyondnormal credit terms, how should the entity account for anyadditional payment above the cash cost of the asset?
If an entity as lessee presents as investment property a property interest held under an operating lease then the entity 1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.
How is the amortized cost for a financial asset calculated? O Amount of original recognition of the asset plus interest earned till date less repayments received till date O Amount of original recognition of the asset plus interest earned till date Amount of original recognition of the asset Manju Fair value of the asset he Problems
28. If an entity as lessee presents as investment property a property interest held under an operating lease then the entity has the option of measuring some items of investment property using the cost model. shall measure in the financial statement all of its investment property using the fair value models shall measure that leased property interest under O the fair value model and the remaining investmen property using the cost model. shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.
The following are properly classified as capital expenditure, except: a. Expenses to promote business goodwill b. Acquisition of intangibles c. Rentals under a “Lease-to-Own” agreement d. None of the above
Interest costs related to which of the following types of assets qualify for interest capitalization? An asset a company manufactures and sells on a routine basis. An asset ready for its intended use at the time of purchase. An asset a company constructs as a discrete project for sale or lease, or an asset a company constructs for its own All of the above
Evaluate the following statements:S1. The borrowing cost is capitalized when the entity undertakes activities that are necessary to prepare the asset for the intended use or sale.S2. Borrowing cost incurred while land acquired for building purposes is held without any associated development activity does not qualify for capitalization. a.False, False b.True, True c.False, True d.True, False
26 Which of the following is not a characteristics of an investment property? a. land and/or building b. held to earn rentals or for capital appreciation c. held by an owner or a lessee under finance lease d. always accounted for using the fair value model